Image steganography is the art of hiding data into images. Secret data such as messages, audio, images can be hidden inside the cover image. This is mainly achieved by hiding the data into the LSB(Least Significant Bit) of the image pixels. To improve the security of steganography, we studied data encryption with AES(Advanced Encryption Standard) and LSB based data hiding technique with advanced user-defined encrypted data distribution in pixels other than the common linear computational method of storing data in a linear form. The pixel locater sequence will contain the location of the data(in form of pixel numbers) to be encrypted/decrypted which is further encrypted with AES thus providing double encryption for data and its location stored over pixels. Steganography has many applications such as medical, military, copyright information, etc.