Face recognition is considered as one of the best biometric methods used for human identification and verification; this is because of its unique features that differ from one person to another, and its importance in the security field. This paper proposes an algorithm for face recognition and classification using a system based on WPD, fractal codes and two-dimensional subspace for feature extraction, and Combined Learning Vector Quantization and PNN Classifier as Neural Network approach for classification. This paper presents a new approach for extracted features and face recognition .Fractal codes which are determined by a fractal encoding method are used as feature in this system. Fractal image compression is a relatively recent technique based on the representation of an image by a contractive transform for which the fixed point is close to the original image. Each fractal code consists of five parameters such as corresponding domain coordinates for each range block. Brightness offset and an affine transformation. The proposed approach is tested on ORL and FEI face databases. Experimental results on this database demonstrated the effectiveness of the proposed approach for face recognition with high accuracy compared with previous methods.