We present a novel lossless compression algorithm called Context Copy Combinatorial Code (C4), which integrates the advantages of two very disparate compression techniques: context-based modeling and Lempel-Ziv (LZ) style copying. While the algorithm can be applied to many lossless compression applications, such as document image compression, our primary target application has been lossless compression of integrated circuit layout image data. These images contain a heterogeneous mix of data: dense repetitive data better suited to LZ-style coding, and less dense structured data, better suited to context-based encoding. As part of C4, we have developed a novel binary entropy coding technique called combinatorial coding which is simultaneously as efficient as arithmetic coding, and as fast as Huffman coding. Compression results show C4 outperforms JBIG, ZIP, BZIP2, and two-dimensional LZ, and achieves lossless compression ratios greater than 22 for binary layout image data, and greater than 14 for gray-pixel image data.