Encoding and decoding method of digital signal

The invention relates to methods for encoding/decoding of a digital signal which is transmitted over a packet switched network. Prediction samples are generated at the transmitting and receiving end. The digital signal is lossless encoded at the transmitting end, and lossless decoded at the receiving end, based on the quantizations of generated prediction samples. During encoding, the generated prediction samples are quantized separately from the quantization of the digital samples. The predictions are used in the index domain in the form of quantized indices during encoding/decoding of the digital signal.