Method for video encoding (SUB, T, Q, Q E -1, T E -1, ADDE, FS_MC_E, ECOD) including encoding the distribution of significant coefficients in a block of coefficients, wherein a non-zero amplitude coefficient is denoted a significant coefficient, said method including the steps: - for a current coefficient block, checking (MDET) the following distribution encoding candidate modes with respect to the resulting number of bits required for encoding (ECOD) the distribution of the significant coefficients in said current block: - sample-by-sample mode wherein the significance statuses of said coefficients are scanned in sequential order through the lines or columns of said current block; - point coordinates mode wherein the quantity of significant coefficients and their coordinates or locations within said current block are encoded as fixed-length binary numbers; - quartation mode wherein a square in which not ail coefficients have amplitude zero, denoted a significant square, is recursively divided into four equal-size squares until single significant coefficients are reached, and the resulting significance statuses of all generated squares are encoded; - sixteen-partition mode wherein a significant square is recursively divided into sixteen equal-size squares until single significant coefficients are reached, and the resulting significance statuses of all generated squares are encoded corresponding to the encoding in said quartation mode; - selecting (MDET) for said current block that one of these candidate modes which results in the minimum number of bits required for encoding the distribution of the significant coefficients; - in said video encoding, using for said current block said selected mode, wherein a key word or number corresponding to said selected mode is included for said current block in the bit stream output from said video encoding. - for a current coefficient block, checking (MDET) the following distribution encoding candidate modes with respect to the resulting number of bits required for encoding (ECOD) the distribution of the significant coefficients in said current block: - sample-by-sample mode wherein the significance statuses of said coefficients are scanned in sequential order through the lines or columns of said current block; - point coordinates mode wherein the quantity of significant coefficients and their coordinates or locations within said current block are encoded as fixed-length binary numbers; - quartation mode wherein a square in which not ail coefficients have amplitude zero, denoted a significant square, is recursively divided into four equal-size squares until single significant coefficients are reached, and the resulting significance statuses of all generated squares are encoded; - sixteen-partition mode wherein a significant square is recursively divided into sixteen equal-size squares until single significant coefficients are reached, and the resulting significance statuses of all generated squares are encoded corresponding to the encoding in said quartation mode; - selecting (MDET) for said current block that one of these candidate modes which results in the minimum number of bits required for encoding the distribution of the significant coefficients; - in said video encoding, using for said current block said selected mode, wherein a key word or number corresponding to said selected mode is included for said current block in the bit stream output from said video encoding.