A plane surface approximation method for image coding and its quad tree scheme are presented in this paper. For a given image block, an optimal plane is found under the min-imum square error criteria, and the pixels of the block are approximated by the corresponding points on the plane. As a result, only three description parameters of the plane are needed to. be encoded. The coding quality is related to the smoothness and the size of the block. Therefore, variable block size can be chosen with a quad tree structure based on the quality requirement.