Sparse representation provides an efficient way for the compression of hyperspectral images in the literature. In this work, an improved version of the Spectral-Spatial Adaptive Sparse Representation (SSASR), Modified SSASR (MSSASR), is proposed for hyperspectral image compression. In the first step of the proposed method, superpixel maps are generated for adaptive spatio-spectral representation. Then, the best possible dictionary is computed for the representation of the data. Afterwards, sparse coefficients are determined depending on the dictionary by Simultaneous Orthogonal Matching Pursuit (SOMP) method. In the final step, the dictionary and sparse coefficients are encoded by quantization and entropy encoding. This paper has the following novelties: modified dictionary learning step, new ordering scheme and Differential Pulse Code Modulation (DPCM) usage. Owing to modified dictionary learning, the sparse coefficients can be represented more compact than traditional SSASR. By using of new ordering scheme, it is not needed to send the superpixel map as side information. Moreover, DCPM usage lowers the magnitudes of sparse coefficients. Thanks to these modifications, the proposed method achieves an important improvement on compression performance. In the experimental results, the proposed method is compared with PCA+JPEG2000, DWT+JPEG2000, 3D-SPECK, 3D-TARP and SSASR methods on Indian Pines, Washington DC Mall, Jasper Ridge and Moffett Field scenes. The evaluation is carried out not only using distance and similarity metrics, namely, signal-to-noise ratio, mean spectral angle and mean spectral correlation metrics but also computation times. Additionally, reconstruction quality in anomaly regions is also used for comparison. Experimental results show that the proposed method outperforms the other compression methods in terms of quality metrics and anomaly preserving performance.