The LZW(Lempel-Ziv-Welch) data compression method is the most popular universal coding algorithm and used in several practical systems. The LZW method, however, has following two disadvantages; the compression ratio converges too slowly and the compressibility is poor when the entropy of the information source is very high. In order to alleviate these disadvantages, we propose a novel source coding technique based on the LZW Algorithm and a splay tree. Our proposed method is superior to the LZW method in terms of universality and convergency. Especially, it is very effective to compress the high entropy information source.