Facilitating data compression during replication using a compressible configuration bit

Computer program product, system and method are provided for facilitating data replication in a storage system. A logical volume of a first storage array of a replicated pair is preconfigured with one or more logical volume attributes, which include a compressible configuration bit that indicates whether data blocks to be stored to that logical volume are compressible during replication. Subsequently, with receipt of a data block at the first storage array to be stored to the logical volume, a check of the compressible configuration bit is made to determine whether the data block is compressible during replication, and if so, the data block is compressed for replication. The compressible configuration bit is placed into the payload region of the data packet being replicated to the second storage array. At the second storage array, the compressible configuration bit is used to determine whether to uncompress the replicated data block.