In this paper, we introduce a new transform for image processing, based on wavelets and the lifting paradigm. The lifting steps of a unidimensional wavelet are applied along a local orientation defined on a quincunx sampling grid. To maximize energy compaction, the orientation minimizing the prediction error is chosen adaptively. A fine-grained multiscale analysis is provided by iterating the decomposition on the low-frequency band. In the context of image compression, the multiresolution orientation map is coded using a quad tree. The rate allocation between the orientation map and wavelet coefficients is jointly optimized in a rate-distortion sense. For image denoising, a Markov model is used to extract the orientations from the noisy image. As long as the map is sufficiently homogeneous, interesting properties of the original wavelet are preserved such as regularity and orthogonality. Perfect reconstruction is ensured by the reversibility of the lifting scheme. The mutual information between the wavelet coefficients is studied and compared to the one observed with a separable wavelet transform. The rate-distortion performance of this new transform is evaluated for image coding using state-of-the-art subband coders. Its performance in a denoising application is also assessed against the performance obtained with other transforms or denoising methods.