  We derive a manifestly gauge invariant low energy blocked action for
Yang-Mills theory using operator cutoff regularization, a prescription which
renders the theory finite with a regulating smearing function constructed for
the proper-time integration. By embedding the momentum cutoff scales in the
smearing function, operator cutoff formalism allows for a direct application of
Wilson-Kadanoff renormalization group to Yang-Mills theory in a completely
gauge symmetry preserving manner. In particular, we obtain a renormalization
group flow equation which takes into consideration the contributions of higher
dimensional operators and provides a systematic way of exploring the influence
of these operators as the strong coupling, infrared limit is approached.
