Recently, a number of chaos-based image encryption algorithms that use low-dimensional chaotic map and permutation-diffusion architecture have been proposed. However, low-dimensional chaotic map is less safe than high-dimensional chaotic system. And permutation process is independent of plaintext and diffusion process. Therefore, they cannot resist efficiently the chosen-plaintext attack and chosen-ciphertext attack. In this paper, we propose a hyper-chaos-based image encryption algorithm. The algorithm adopts a 5-D multi-wing hyper-chaotic system, and the key stream generated by hyper-chaotic system is related to the original image. Then, pixel-level permutation and bit-level permutation are employed to strengthen security of the cryptosystem. Finally, a diffusion operation is employed to change pixels. Theoretical analysis and numerical simulations demonstrate that the proposed algorithm is secure and reliable for image encryption.