A method and apparatus for the perceptual coding of audio signals in whichperceptual noise shaping is achieved in the time domain by performing a (linear) prediction(i.e., filtering) in the frequency domain. As a result, the temporal spread of quantizationnoise is reduced. Specifically, according to one illustrative embodiment of the presentinvention, a method comprises decomposition of the audio signal into a plurality of spectralcomponent signals; generating a prediction signal representative of a prediction of one ofsaid spectral component signals, said prediction based on one or more other ones of saidspectral component signals; comparing the prediction signal with said one of said spectralcomponent signals to generate a prediction error signal; coding said one of said spectralcomponent signals based on the prediction error signal to generate a coded spectralcomponent signal; and generating the encoded signal based on the coded spectralcomponent signal.
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