Abstract: A new secure image steganographic algorithm for encrypted domain steganography is proposed based on fully homomorphic encryption and double-layer embedding. The proposed method can reach the capacity of classical steganography while resist to statistical steganalysis both in plaintext domain and encrypted domain. At first, a novel double-layered embedding algorithm based on adaptive steganography and Wet Paper Codes(WPCs) is constructed for plaintext embedding. Then an fully homomorphic encryption algorithm is modified to encrypt the stego image. Finally, the embedding message is extracted in encrypted domain. The performance analysis and experimental results show that the steganographic security of the proposed method preserves well performance under several attacking conditions, including both steganographic/encrypted keys leakage, encrypted keys leakage and no keys leakage.