The lifting scheme based on spatial domain has been widely used in the digital image processing that its computes fast and simple, and it is calculated for the reversible from integer to integer wavelet transform. According to M-channels wavelet transform theory and the signal being subdivided, it is carried out the lifting to M-channels wavelet transform, and a new fast algorithm of M-channels lifting wavelet transform is presented in this paper. The algorithm is easy to compare with the traditional wavelet transform that it has only the decomposed algorithm, the composed algorithm is given. However, integer to integer wavelet transform can be achieved when the operation result is taken the proximal integer. The algorithm is used to image processing. The experiment result shows the algorithm is very useful for image compression.