A prediction control unit determines whether to use intra-prediction method or a method of prediction based on reduced image in which a predicted image is generated using a locally decoded image of a block as an object of coding that has been coded and reduced, according to the amount of high-frequency component contained in the block as the object of coding. When use of intra-prediction method is determined, locally decoded images of previously-encoded neighboring blocks stored in a frame memory are down-sampled by a down-sampling unit and subjected to intra-prediction by an intra-prediction unit, and coding is done using the prediction data. When use of prediction method based of reduced image is determined, inter-layer prediction is done using neighboring images obtained by reading locally decoded images resulting from a process of a lower layer from the frame memory, and coding is done using the prediction data.