One of the most critical tasks when designing a portable wireless neural recording system is to limit power consumption. This paper proposes a new compression technique applied to neuronal recordings in real-time. The signal is compressed before transmission using a discriminative vector quantization algorithm and then it is reconstructed on the receiver side. Results show that power consumption is decreased while more efficiently using the limited bandwidth. A discriminative Linde-Buzo-Gray algorithm (DLBG) preserves action potential regions of the neuronal signal where information is contained while efficiently filtering background activity. The compression algorithm has been tested in real time on a hardware platform (PICO DSP ) that has a Digital Signal Processor (DSP) which performs the algorithm before sending the compressed data to a wireless transmitter. The compression ratios obtained range between 20:1 and 70:1 depending on the embedding size of the signal and the number of code-vectors used.