When transmitting the data in digital communication, it is well desired that the transmitting data bits should be as minimal as possible, so many techniques are used to compress the data. In this paper, a Lempel-Ziv algorithm for data compression was implemented through VHDL coding. The Lempel-Ziv algorithm is one of the most widely used among lossless data compression algorithms for hardware implementation. The work in this paper is devoted to improve the compression rate, space-saving, and utilization of the Lempel-Ziv algorithm using a systolic array approach. The developed design is validated with VHDL simulations using Xilinx ISE 14.5 and synthesized on Virtex-6 FPGA chip. The results show that our design is efficient in providing high compression rates as well as improved utilization. The Throughput is increased by 50% and the design area is decreased by more than 23% with a high compression ratio compared to comparable previous designs. 