The compression and encryption of images within this domain creates a world of tremendous benefits, specifically in the ability to revise essential aspects of the image and reduce cipher text expansion ratios thus reducing computational complexity. In this context, we present a novel encryption method based on matrix keys for the first time. Unlike many of the block-wise encryption paradigms, our approach undergoes a radical change to the entire concept by making it possible to encrypt the entire compressed image in a single step. This shift of paradigm not only increases efficiency but enhances security as block-wise computation is no longer required. In this regard, proposed work of image encryption in the compressed domain Autoencoder provides a step up in innovation in the application of image encryption within compression at par with increased effectiveness and security. Experimental results and the security analysis using different dataset show that the proposed scheme can achieve a sufficiently high-security level with high compression efficiency.