A two-dimensional Photon Counting Position Encoder is proposed for Positron Emission Tomography (PET) medical cameras. The new detector uses three new concepts: 1) a method of controlling the spatial distribution of photons from Bismuth Germanate Scintillators, 2) the use of all digital photon counting for processing the photomultiplier signal, and 3) the use of pattern recognition to encode position. The new detector is expected to reduce the cost of this portion of the PET scanner by approximately a factor of eight. The cost reduction anticipated for a typical four ring camera will be in the range of $600,000 to $1,000,000 which is 20-40 percent of the cost of the PET scanner. In addition to the potential cost savings of this new approach, the photon division technique will allow one to obtain 2-3 mm position resolution in two dimensions. The state-of-the art commercial scanners.