In this paper, a new mesh based algorithm is applied for motion estimation and compensation in the wavelet domain. The first major contribution of this work is the introduction of a new active mesh based method for motion estimation and compensation. The proposed algorithm is based on the mesh energy minimization with novel sets of energy functions. The proposed energy functions have appropriate features, which improve the accuracy of motion estimation and compensation algorithm. We employ the proposed motion estimation algorithm in two different manners for video compression. In the first approach, the proposed algorithm is employed for motion estimation of consecutive frames. In the second approach, the algorithm is applied for motion estimation and compensation in the wavelet sub-bands. The experimental results reveal that the incorporation of active mesh based motion-compensated temporal filtering into wavelet sub-bands significantly improves the distortion performance rate of the video compression. We also use a new wavelet coder for the coding of the 3D volume of coefficients based on the retained energy criteria. This coder gives the maximum retained energy in all sub-bands. The proposed algorithm was tested with some video sequences and the results showed that the use of the proposed active mesh method for motion compensation and its implementation in sub-bands yields significant improvement in PSNR performance.
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