In this contribution, a novel spatio-temporal prediction algorithm for video coding is introduced. This algorithm exploits temporal as well as spatial redundancies for effectively predicting the signal to be encoded. To achieve this, the algorithm operates in two stages. Initially, motion compensated prediction is applied on the block being encoded. Afterwards this preliminary temporal prediction is refined by forming a joint model of the initial predictor and the spatially adjacent already transmitted blocks. The novel algorithm is able to outperform earlier refinement algorithms in speed and prediction quality. Compared to pure motion compensated prediction,