The authors present a novel hybrid statistical, DCT and vector quantisation-based video-coding technique. In intra mode of operation, an input frame is divided into a number of non-overlapping pixel blocks. A discrete cosine transform then converts the coefficients in each block into the frequency domain. Coefficients with the same frequency index at different blocks are put together generating a number of matrices, where each matrix contains the coefficients of a particular frequency index. The matrix, which contains the DC coefficients, is losslessly coded.