Sprite is an efficient and concise method for representation of background video object, which is typically compressed with the MPEG-4 object-based coding technique. Due to the property of background video object, sprite image often comprises many flat and texture-correlation regions. In order to fully exploit spatial redundancy, this paper proposes an idea by utilizing directional spatial prediction to improve sprite coding. In general, the generated sprite is not a rectangular image. Since traditional spatial prediction techniques difficultly deal with those contour blocks, one padding technique is first proposed to fill transparent regions in contour blocks by considering both the correlation of pixels within a block and the correlation among neighboring blocks. Afterward, every block is encoded with INTRA coding technique developed in H.26L. Experimental results show that the propose sprite coding scheme outperforms the MPEG-4 object-based coding up to 3.0dB at low bit rates. Furt...