In view of the digital image coding, the authors proposed a multi-directional hybrid differential method based on the analysis of two-directional hybrid differential and 3-parameter variable length coding method. Firstly, multi-directional hybrid differential method was used to analyze local feature of the current pixel based on other four pixels nearby. Then according to the analysis results, an optimal differential direction for the current pixel was chosen from several primary differential directions. Compared with two-directional hybrid differential, multi-directional hybrid differential did not save direction flags. Primary directions contained four differential directions. Compared with results of two-directional hybrid differential, the entropy value of image processed by multi-direction hybrid differential was reduced by 8.2% and the bits per pixel was reduced by 11%. The experimental results show that this algorithm is useful for improving the coding efficiency by reducing the entropy value of digital image to a lower level.