Methods and systems for fast variable block-size motion estimation based on merging and splitting procedures for AVC video encoding are disclosed. The methods take advantage of the correlation of the Motion Vectors (MVs) of the different block-size modes to achieve a good computation reduction. Considering that the smaller the block-size difference between two block-sizes is, the more correlations between their MVs can be expected, the methods use a 8*8 block as an initial processing block to calculate prediction MVs. The prediction MVs are then used in predicting MVs for other block-sizes.