The latest video-coding standards achieve higher coding efficiency than the previous video standards, while increasing the complexity and the difficulty of encoding. In a skip macroblock prediction mode some coding parameters (such as motion vectors and residual) are not coded. Selecting skip macroblock prediction mode reduces the size of the encoded bitstream while possibly deteriorating image quality. Previously the selection of the skip prediction mode is performed after motion estimation process. This invention determines whether each macroblock should be encoded in skip macroblock prediction mode before motion estimation. This invention substantially reduces computational cost with a very small deterioration in coding efficiency.