A method and system for low-complexity Slepian-Wolf rate estimator in a hybrid Wyner-Ziv video encoder determines the minimum Slepian-Wolf code rate required to allow correct decoding. The Slepian-Wolf estimator does not assume ideality of source and side-information statistics and does not require the presence of a feedback channel from the decoder to the encoder in order to determine the correct Slepian-Wolf coding rate. Instead, it adapts to the statistical properties of the video steam. The Slepian-Wolf estimator provides very efficient compression performance while avoiding Slepian-Wolf decoding failures.