Do it in a non-lossy format which Illustrator can read. For instance, psd is non-lossy. As is bmp. And I think tif, but not sure on that one. I don't know what illustrator can read and what it can't. Don't use anything which forces compression such as gif or jpg. And if you do use a compressed format, use the least amount of compression (best quality) you can.
Sincerely,
There are two main ways of moving a file from Photoshop to Illustrator - opening the PSD in Illustrator or choosing the File > Place command. There is no need to export the file as any special file format - and the file quality will not be compromised as all image information is retained.
The advantage of the open command is that it creates a new Illustrator (AI) document based on the PSD. The advantage of the Place command is that it can be used to import an image into a pre-existing file. You can also choose to link or embed the image. Linked images will result in a smaller Illustrator file and can be set to automatically update when you make changes to the original Photoshop file.
Another option (if you are using PS6) is to export as a PDF, which is recognisable by both Photoshop and Illustrator and will retain both vector and bitmap information.
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