An efficient description of image segments having an arbitrary shape is one of the main problems in object oriented coding. In our contribution, we introduce a scheme for region based coding derived from the BTC (block truncation code) algorithm (see Farkas, P. et al., "Adaptive Image Coding Based on Generalized IBTC", Broadband Islands 1994: Connecting with the End-User, Elsevier Science B.V., 1994). After segmentation, contours of the created regions are described by an 8-directional chain code as in MPEG-4. In the interior of the regions, there is applied a modified BTC algorithm that we call RTC-region truncation code. The results of compression are compared with BTC. Especially for low bit rate image coding, we achieved, in some cases, a better visual quality using similar values of an objective criterion parameter (MSE). In our approach, it is not necessary to follow the rules for the BTC channel encoder.
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