AbstractWe propose hybrid intra prediction, a new method for generating intra prediction images in intra coding. When generating intra prediction images in pixel domain, this method selects the intra prediction image from one generated using pixel‐based intra prediction and another generated using block‐based intra prediction, according to which is optimal based on a rate distortion criterion. This selection is performed for macroblock units and segmented macro‐block units that we term sub‐macroblocks. In addition, information indicating which intra prediction method was used within a macroblock is described within the bitstream using a tree structure. We evaluate the proposed method by implementing it in an H.264‐based intra prediction coding scheme. Experimental results confirm that compared to conventional methods, our implementation of the proposed method is able to achieve a 6% reduction in bit rate while maintaining the same peak signal to noise ratio (PSNR). © 2006 Wiley Periodicals, Inc. Electron Comm Jpn Pt 3, 90(2): 50–62, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/ecjc.20312