In this paper, a new algorithm is proposed to embed a watermark in digital image such that, it can survive against lossy JPEG (Joint Photographic Experts Group) compression. Analyzing operations are performed on the cover image before and after compression to determine strong locations survival against JPEG compression; these locations are used as host for the watermark. A map is used to embed these strong locations indices; used by the receiver to extract these indices. Fidelity Criteria evaluates errors between the original and cover images, good tests are achieved without perceptual degradation of the transparency of the cover image.