This paper presents a method of scalable lossless image compression by means of lossy coding. A progressive decoding capability and a full decoding for the lossless rendition are equipped with the losslessly encoded bit stream. Embedded coding is applied to large-amplitude coefficients in a wavelet transform domain. The other wavelet coefficients are encoded by a context-based entropy coding. The proposed method slightly outperforms JPEG-LS in lossless compression. Its rate-distortion performance with respect to progressive decoding is close to that of JPEG2000. The spatial scalability with respect to resolution is also available.