  The requirement of a large number of electronic channels poses a big
challenge for Micro-pattern Gas Detector (MPGD) to achieve good spatial
resolution. By using the redundancy that at least two neighboring strips record
the signal of a particle, a novel method of encoded multiplexing readout for
MPGDs is presented in this paper. The method offers a feasible and
easily-extensible way of encoding and decoding, and can significantly reduce
the number of readout channels. A verification test was carried out on a 5*5
cm2 Thick Gas Electron Multiplier (THGEM) detector using a 8 keV Cu X-ray
source with 100um slit, where 166 strips are read out by 21 encoded readout
channels. The test results show a good linearity in its position response, and
the spatial resolution root-mean-square (RMS) of the test system is about 260
{\mu}m. This method has an attractive potential to build large area detectors
and can be easily adapted to other detectors like MPGDs.
