Now a days transfer of gigantic amount of information in an accurate format is a big problem. Storage is needed to store all this information is limited to be calculated before sending data over the internet. The intercommunication path which is also determinate with limited and restricted communication lines. This restriction driven to necessity of data compression. To compress data effectively a most widely popular used compression technique is Huffman. By minimizing the memory space for Huffman tree it will be more feasible. Our paper focused on minimizing the size of Huffman tree for encoding and decoding and also proposed an efficient method for storing Huffman tree. For this purpose we also design an encoding algorithm as well as a decoding algorithm.This method works more efficiently among all present techniques in where total memory needs to represent the tree structure for Huffman tree are 10.75n−3 bits for worst case and in best case it is 9n bits.