Many multimedia applications deal with image progressive transmission in order to reduce channel bandwidth and to allow for interactivity between users and service providers. In this framework, the paper presents a novel two-source coding scheme where thumbnail data are interpolated by fractal zooming to obtain higher resolution images; the relevant residual information is then coded by vector quantizing the wavelet decomposition coefficients. Performance of this novel scheme is evaluated on a variety of pictures, confirming its validity both in quantitative (MSE) and qualitative terms (absence of block distortion).