Here we describe a baseline-based binary shape coding method in which arbitrarily shaped object is represented by the traced 1-D data from baseline and turning point (TP). The shape coding is performed based on contour-based method in each separated shape. There are two coding modes in shape coding, i.e. intra and inter mode as in texture coding. In inter coding mode, object identification, global shape matching, and local contour matching are used. In intra mode and residue coding, the DPCM values of T P and the 1-D dzstance values of the shape are encoded by fixed arithmetic encoder. Simulation results show that the proposed method has better codzng eficiency and subjective quality compared with the block-based method i.e. context arithmetic encoding (CAE).