The challenge of image interpolation is to preserve spatial details. We propose a soft-decision interpolation technique that estimates missing pixels in groups rather than one at a time. The new technique learns and adapts to varying scene structures using a 2-D piecewise autoregressive model. The model parameters are estimated in a moving window in the input low-resolution image. The pixel structure dictated by the learnt model is enforced by the soft-decision estimation process onto a block of pixels, including both observed and estimated. The result is equivalent to that of a high-order adaptive nonseparable 2-D interpolation filter. This new image interpolation approach preserves spatial coherence of interpolated images better than the existing methods, and it produces the best results so far over a wide range of scenes in both PSNR measure and subjective visual quality. Edges and textures are well preserved, and common interpolation artifacts (blurring, ringing, jaggies, zippering...