The new video-coding standard MPEG-4 enables content-based functionality, as well as high coding efficiency, by taking into account shape information of moving objects. A novel algorithm for segmentation of moving objects in video sequences and extraction of video object planes (VOPs) is proposed in this paper. For the case of multiple video objects in a scene, the extraction of a specific single video object (VO) based on connected components analysis and smoothness of VO displacement in successive frames is also discussed. Our algorithm begins with a robust double-edge map derived from the difference between two successive frames. After removing edge points which belong to the previous frame, the remaining edge map, moving edge (ME), is used to extract the VOP. The proposed algorithm is evaluated on an indoor sequence captured by a low-end camera as well as MPEG-4 test sequences and produces promising results.