Image encryption is an effective method to protect images or videos by transferring them into unrecognizable formats for different security purposes. To improve the security level of bit-plane decomposition based encryption approaches, this paper introduces a new image encryption algorithm by using a combination of parametric bit-plane decomposition along with bit-plane shuffling and resizing, pixel scrambling and data mapping. The algorithm utilizes the Fibonacci P-code for image bit-plane decomposition and the 2D P-Fibonacci transform for image encryption because they are parameter dependent. Any new or existing method can be used for shuffling the order of the bit-planes. Simulation analysis and comparisons are provided to demonstrate the algorithm's performance for image encryption. Security analysis shows the algorithm's ability against several common attacks. The algorithm can be used to encrypt images, biometrics and videos. © 2011 Elsevier B.V. All rights reserved.