We derive a manifestly gauge invariant low energy blocked action for Yang-Mills theory using operator cutoff regularization, a prescription which renders the theory finite with a regulating smearing function constructed for the proper-time integration. By embedding the momentum cutoff scales in the smearing function, operator cutoff formalism allows for a direct application of Wilson-Kadanoff renormalization group to Yang-Mills theory in a completely gauge symmetry preserving manner. In particular, we obtain a renormalization group flow equation which takes into consideration the contributions of higher dimensional operators and provides a systematic way of exploring the influence of these operators as the strong coupling, infrared limit is approached.

36 pages in plain TeX, no figures