This paper describes a new audio coding scheme based on sinusoidal coding of signals. Sinusoidal coding permits the representation of a given signal through the summation of sinusoids. The parameters of the sinusoids (the amplitudes, phases and frequencies) are transmitted to allow the signal reconstruction. In the proposed scheme, the sinusoidal parameters are sorted according to energy content and perceptual significance. The most significant parameters are transmitted first allowing the use of only a small set of the parameters for signal reconstruction. The proposed scheme incurs a low delay and uses a 20 ms frame length. Results show that the coder operating at a mean rate of 39 kb/s, performs favorably in comparison with the MPEG-4 coder at 42 kb/s.