A video image processing system is described that generates the interpolated video images with sharp and jaggedness-free edges. A method of video image processing is also described that interpolates video images to generate the video images with sharp and jaggedness-free edges. The video image processing system receives and makes input image data available for further processing; analyzes the local features of the input image data; filters the input image data before performing interpolation process; modifies the phase value adaptive to the local edge distance; rescales the input image data in horizontal interpolation using the modified phase value; and rescales the horizontally interpolated image data in vertical interpolation using modified phase value.