We extend our previous work on space-frequency quantization (SFQ) for image coding from wavelet transforms to the more general wavelet packet transforms. The resulting wavelet packet coder offers a universal transform coding framework within the constraints of filterbank structures by allowing joint transform and quantizer design without assuming a priori statistics of the input image. In other words, the new coder adaptively chooses the representation to suit the image and the quantization to suit the representation. Experimental results show that, for some image classes, our new coder gives excellent coding performance.