By analyzing the features unfit for parallel computation and low power implementation, a VLSI architecture of JPEG-LS encoder for lossless image compression is proposed in this paper. It functionally consists of four parts: Mode decision module, clock controller, three linear parallel pipelines, and a two-tier data packer. Computations are organized in a fully pipelined style in these modules, so that real time data processing can be achieved. The clock management scheme with four interlaced clock domains and a dedicated clock controller is applied to ensure the bottleneck calculation, reduce the clock frequency on non-critical paths, and shut off the working clocks of idle modules, which reduces 15.7% of overall power consumption. The proposed JPEG-LS encoder with the features of low power and high processing speed, has been applied in a wireless endoscopy system.