  Within the scope of this contribution we propose a novel efficient
spatio-temporal prediction algorithm for video coding. The algorithm operates
in two stages. First, motion compensation is performed on the block to be
predicted in order to exploit temporal correlations. Afterwards, in order to
exploit spatial correlations, this preliminary estimate is spatially refined by
forming a joint model of the motion compensated block and spatially adjacent
already decoded blocks. Compared to an earlier refinement algorithm, the novel
one only needs very little iteration, leading to a speedup of factor 17. The
implementation of this new algorithm into the H.264/AVC leads to a maximum
reduction in data rate of up to nearly 13% for the considered sequences.
