In this paper, a subband coding system consisting a combination of analysis filter bank, vector quantizer and trellis coding is designed. For the analysis filter bank, which decompose an input signal spectrum to bands we used a design method of cosine modulated filter bank with the perfect reconstruction. The analysis filters are obtained by cosine modulation of a prototype filter with the transfer function H(z), which optimization is performed right through the two-channel lossless lattice structure. Next block in this coding system is the vector quantizer with a full search, which perform quantization in the subband domain. The final block of the designed subband coding system is the block of trellis coding. This uses a block structured codebook of the vector quantizer with an extended set of the quantization vectors in accordance with Ungerboeck's theory of clustering the set.