An optical flow-based motion estimation algorithm is proposed for video cod
ing. The algorithm is based on the fact that true motion vectors have simil
ar characteristics to optical how vectors. The algorithm uses block matchin
g motion estimation with an adaptive search region. The search region is co
mputed from motion-fields that are estimated based on the optical flow. The
results obtained using test images show that the proposed algorithm can pr
oduce a significant improvement compared with previous optical flow algorit
hm and block matching algorithm.