This paper proposes a novel scalable compression method for stream cipher encrypted images, where stream cipher is used in the standard format. The bit stream in the base layer is produced by coding a series of nonoverlapping patches of the uniformly down-sampled version of the encrypted image. An off-line learning approach can be exploited to model the reconstruction error from pixel samples of the original image patch, based on the intrinsic relationship between the local complexity and the length of the compressed bit stream. This error model leads to a greedy strategy of adaptively selecting pixels to be coded in the enhancement layer. At the decoder side, an iterative, multiscale technique is developed to reconstruct the image from all the available pixel samples. Experimental results demonstrate that the proposed scheme outperforms the state-of-the-arts in terms of both rate-distortion performance and visual quality of the reconstructed images at low and medium rate regions.