Abstract: In recent studies, more research has been spent on developing data hiding techniques in encrypted images. The novel method, a Reversible Data Hiding (RDH) in encrypted images, has been given more attention due to its exclusive property of recovering the embedded data from the cover image without any loss after the extraction of the embedded data. This kind of lossless recovery was not possible with previous data hiding techniques. In all these reversible data hiding techniques, a space is created on the encrypted images, which may possibly cause errors during the image recovery and data extraction process. In the proposed method, space is created on the cover image before the encryption. Hence, real reversibility is achieved, and both image recovery and the data extraction process are error free.