A new method for texture coding which combines 2-D linear prediction and stochastic vector quantization is presented in this paper. To encode a texture, a linear predictor is computed first. Next, a codebook following the prediction error model is generated and the prediction error is encoded with VQ, using an algorithm which takes into account the pixels surrounding the block being encoded. In the decoder, the error image is decoded first and then filtered as a whole, using the prediction filter. Hence, correlation between pixels is not lost from one block to another and a good reproduction quality can be achieved.