The main aim of work is to develop morlet wavelet using Munich and Cambridge filters, for audio compression and most psycho-acoustic models for coding applications use a uniform -equal bandwidth, spectral decomposition for compression. In this paper we present a new design of a psycho-acoustic model for audio coding following the model used in the standard MPEG-1 audio layer 3. This architecture is based on appropriate wavelet packet decomposition instead of a short term Fourier transformation. To fulfill this aim, the following objectives are carried out: Approximate the frequency selectivity of the human auditory system. However, the equal filter properties of the uniform sub- bands do not match the non uniform characteristics of cochlear filters and reduce the precision of psycho-acoustic modeling. This architecture is based on appropriate wavelet packet decomposition instead of a short term Fourier transformation. In this paper Morlet Munich coder shows best performance. The MPEG/Audio is a standard for both transmitting and recording compressed ratio. The MPEG algorithm achieves compression by exploiting the perceptual limitation of the human ear.