This paper interprets image interpolation as a channel decoding problem and proposes a tanner graph based interpolation framework, which regards each pixel in an image as a variable node and the local image structure around each pixel as a check node. The pixels available from low-resolution image are "received" whereas other missing pixels of highresolution image are "erased", through an imaginary channel. Local image structures exhibited by the low-resolution image provide information on the joint distribution of pixels in a small neighborhood, and thus play the same role as parity symbols in the classic channel coding scenarios. We develop an efficient solution for the sum-product algorithm of belief propagation in this framework, based on a gaussian auto-regressive image model. Initial experiments show up to 3dB gain over other methods with the same image model. The proposed framework is flexible in message processing at each node and provides much room for incorporating more sophisticated image modelling techniques.