We analyze the subwavelength imaging using compensated bilayer of anisotropic metamaterials and study the material loss and retardation effect on the image properties. Through rigorous analysis of the electromagnetic wave transmission and numerical calculations of the electromagnetic field distribution, we demonstrate that the anisotropic bilayer lens exhibits a decreased sensitivity to material loss and retardation, therefore has a better image with subwavelength resolution than that of the isotropic perfect lens configuration. We find that this is due to the fact that the inhomogeneous evanescent waves that are responsible for image resolution beyond the diffraction limit have been converted to propagating waves in the anisotropic bilayer, resulting in less sensitive to material loss and retardation.

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