A method for performing multihypothesis prediction during video coding of a block in a current frame, the method comprising: dividing the block into a plurality of sub-blocks; and processing each of the sub-blocks, wherein the step of processing each of the sub-blocks further comprises: obtaining motion information of a first set of coded blocks for multihypothesis motion compensation of a specific sub-block of the sub-blocks; utilizing a linear combination of a plurality of pixel values derived by employing said motion information of the first set of coded blocks as a predicted pixel value of the specific sub-block; and deriving a predicted pixel value of another sub-block in the block by utilizing motion information of a second set of coded blocks, wherein the second set of coded blocks comprises at least one coded block that is not in the first set of coded blocks; characterized in that the motion information comprises a first motion vector and a second motion vector corresponding to one or more sub-blocks of other one or more blocks within the current frame; wherein the step of utilizing the linear combination of the plurality of pixel values as the predicted pixel value of the specific sub-block further comprises: utilizing a weighted summation of the plurality of pixel values as the predicted pixel value of the specific sub-block by employing a weighting parameter, wherein said weighted parameter is inversely proportional to a distance between said specific sub-block and the sub-blocks of the first set of coded blocks. dividing the block into a plurality of sub-blocks; and processing each of the sub-blocks, wherein the step of processing each of the sub-blocks further comprises: obtaining motion information of a first set of coded blocks for multihypothesis motion compensation of a specific sub-block of the sub-blocks; utilizing a linear combination of a plurality of pixel values derived by employing said motion information of the first set of coded blocks as a predicted pixel value of the specific sub-block; and deriving a predicted pixel value of another sub-block in the block by utilizing motion information of a second set of coded blocks, wherein the second set of coded blocks comprises at least one coded block that is not in the first set of coded blocks; obtaining motion information of a first set of coded blocks for multihypothesis motion compensation of a specific sub-block of the sub-blocks; utilizing a linear combination of a plurality of pixel values derived by employing said motion information of the first set of coded blocks as a predicted pixel value of the specific sub-block; and deriving a predicted pixel value of another sub-block in the block by utilizing motion information of a second set of coded blocks, wherein the second set of coded blocks comprises at least one coded block that is not in the first set of coded blocks; characterized in that the motion information comprises a first motion vector and a second motion vector corresponding to one or more sub-blocks of other one or more blocks within the current frame; wherein the step of utilizing the linear combination of the plurality of pixel values as the predicted pixel value of the specific sub-block further comprises: utilizing a weighted summation of the plurality of pixel values as the predicted pixel value of the specific sub-block by employing a weighting parameter, wherein said weighted parameter is inversely proportional to a distance between said specific sub-block and the sub-blocks of the first set of coded blocks. the motion information comprises a first motion vector and a second motion vector corresponding to one or more sub-blocks of other one or more blocks within the current frame; wherein the step of utilizing the linear combination of the plurality of pixel values as the predicted pixel value of the specific sub-block further comprises: utilizing a weighted summation of the plurality of pixel values as the predicted pixel value of the specific sub-block by employing a weighting parameter, wherein said weighted parameter is inversely proportional to a distance between said specific sub-block and the sub-blocks of the first set of coded blocks.