Image interpolation is a special case of image super-resolution, where the low-resolution image is directly down-sampled from its high-resolution counterpart without blurring and noise. Therefore, assumptions adopted in super-resolution models are not valid for image interpolation. To address this problem, we propose a novel image interpolation model based on sparse representation. Two widely used priors including sparsity and nonlocal self-similarity are used as the regularization terms to enhance the stability of interpolation model. Meanwhile, we incorporate the nonlocal linear regression into this model since nonlocal similar patches could provide a better approximation to a given patch. Moreover, we propose a new approach to learn adaptive sub-dictionary online instead of clustering. For each patch, similar patches are grouped to learn adaptive sub-dictionary, generating a more sparse and accurate representation. Finally, the weighted encoding is introduced to suppress tailing of fitting residuals in data fidelity. Abundant experimental results demonstrate that our proposed method outperforms several state-of-the-art methods in terms of quantitative measures and visual quality.