Abstract—This paper proposes a constrained two-layer compression technique for electrocardiogram (ECG) waves, of which encoded parameters can be directly used for the diagnosis of arrhythmia. In the first layer, a single ECG beat is represented by one of the registered templates in the codebook. Since the required coding parameter in this layer is only the codebook index of the selected template, its compression ratio (CR) is very high. Note that the distribution of registered templates is also related to the characteristics of ECG waves, thus it can be used as a metric to detect various types of arrhythmias. The residual error between the input and the selected template is encoded by a wavelet-based transform coding in the second layer. The number of wavelet coefficients is constrained by pre-defined maximum distortion to be allowed. The MIT-BIH arrhythmia database is used to evaluate the performance of the proposed algorithm. The proposed algorithm shows around 7.18 CR when the reference value of percentage root mean square difference (PRD) is set to ten.