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No / We propose a hybrid scheme to implement an object driven, block based algorithm to achieve low bit-rate compression of stereo image pairs. The algorithm effectively combines the simplicity and adaptability of the existing block based stereo image compression techniques with an edge/contour based object extraction technique to determine appropriate compression strategy for various areas of the right image. Unlike the existing object-based coding such as MPEG-4 developed in the video compression community, the proposed scheme does not require any additional shape coding. Instead, the arbitrary shape is reconstructed by the matching object inside the left frame, which has been encoded by standard JPEG algorithm and hence made available at the decoding end for those shapes in right frames. Yet the shape reconstruction for right objects incurs no distortion due to the unique correlation between left and right frames inside stereo image pairs and the nature of the proposed hybrid scheme. Extensive experiments carried out support that significant improvements of up to 20% in compression ratios are achieved by the proposed algorithm in comparison with the existing block-based technique, while the reconstructed image quality is maintained at a competitive level in terms of both PSNR values and visual inspections