Vector quantisation (VQ) has been extensively used as an effective image coding technique. One of the most important steps in the whole process is the design of the codebook. The codebook is generally designed using the LBG algorithm which uses a large training set of empirical data that is statistically representative of the images to be encoded. The LBG algorithm, although quite effective for practical applications, is computationally very expensive and the resulting codebook has to be recalculated each time the type of image to be encoded changes. Stochastic vector quantisation (SVQ) provides an alternative way for the generation of the codebook. In SVQ, a model for the image is computed first, and then the codewords are generated according to this model and not according to some specific training sequence. The SVQ approach presents good coding performance for moderate compression ratios and different type of images. On the other hand, in the context of synthetic and natural hybrid coding (SNHC), there is always need for techniques which may provide very high compression and high quality for homogeneous textures. A new stochastic vector quantisation approach using linear prediction which is able to provide very high compression ratios with graceful degradation for homogeneous textures is presented. Owing to the specific construction of the method, there is no block effect in the synthetised image. Results, implementation details, generation of the bit stream and comparisons with the verification model of MPEG-4 are presented which prove the validity of the approach. The technique has been proposed as a still image coding technique in the SNHC standardisation group of MPEG.

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