In segmentation-based image coding techniques the image to be compressed is first segmented. Then, the information is coded describing the shape and the interior of the regions. A new method to encode the texture obtained in segmentation-based coding schemes is presented. The approach combines 2-D linear prediction and stochastic vector quantization. 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. 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.