An innovative technique for the interpolative vector quantisation (IVQ
) of an image is developed. The technique employs a new split-and-merg
e algorithm which selects a near-to-optimal set of sampling points for
the IVQ. Experimental results show that, under the same bit rate, ove
r 0.5 dB improvement is achieved by the proposed method when compared
with the results obtained by the traditional fixed sampling point inte
rpolation in terms of peak signal-to-noise ratio (PSNR).