This paper considers the reconstruction of images from partial coeffic
ients in block transform coders and its application for packet loss re
covery in image transmission over ATM networks. The proposed algorithm
makes use of the smoothness property of common image signals and prod
uces a maximally smooth image among all those with the same coefficien
ts and boundary conditions. It recovers each damaged block by minimizi
ng the intersample variation within the block and across the block bou
ndary. The optimal solution is achievable through two linear transform
ations, where the transform matrices depend on the loss pattern and ca
n be calculated in advance. The reconstruction of contiguously damaged
blocks is accomplished iteratively, using the previous solution as th
e boundary conditions in each new step. This technique is applicable t
o any unitary block-transform and is very effective for recovering the
DC and low-frequency coefficients. When applied to still image coders
using the discrete cosine transform (DCT), high quality images have b
een reconstructed in the absence of many DC and low-frequency coeffici
ents over spatially adjacent blocks. When the damaged blocks are made
isolated by the use of block interleaving, satisfactory results have b
een obtained even when all the coefficients are missing.