1 Low bitrates enabled by the H.264/AVC standard come at the cost of significant decoding complexity. The problem is exacerbated when multi-view video coding (MVC), presently being standardized by the MPEG committee, is considered. Increasing the number of reference views will improve the prediction but also increase the encoding and decoding complexity. In this paper we present an alternative to transform coding and arithmetic coding used to code motion compensation residuals in H.264/AVC. Proposed approach is sorting permutation based, resulting in significantly decreased decoding complexity. We evaluate the efficiency of the coding and present initial results obtained for some sequences in published literature.