This paper presents a very efficient steganography technique based on the correlation of a target pixel with its neighboring pixels. There are four cases: five neighbor correlation, six neighbor correlation, seven neighbor correlations, and eight neighbor correlation. The difference between the target pixel value and the average of the neighboring pixel values is calculated to estimate the number of bits that can be embedded in a target pixel. In five neighbor case the five neighbor pixels are considered. Similarly in six, seven, and eight neighbor cases six, seven, and eight neighbor pixels are considered respectively. The pixels those suffer with the fall off boundary problem or fall in error problem are exempted from data hiding. The extraction procedure is very simple and does not need the original image. The experimental results reveal that the measured peak signal-to-noise ratio values are acceptable and the stego-images are imperceptible.