Steganography is a technique of information hiding. It is more and more important while the internet communication grows up. Various steganographic algorithms have been proposed in recent years. For example, Ni et al. have proposed a lossless data-hiding algorithm based on the histogram modification. To have more security and more information embedding capacity, we extend the Ni’s algorithm with a random permutation and a histogram re-quantization. With a random permutation, it is not easy to be broken by a brute-force attack. With a histogram re-quantization, we increase the embedding capacity about 3 times. In our approach, it is visually indistinguishable between a cover image and a stego-image with a large embedding capacity.