In this letter, a new Inter lossless coding method based on a residual DPCM (Differential Pulse Code Modulation) is proposed to improve compression ratio in the H.264 standard. Since the spatial correlation in a residual block can be further exploited among the residual signals after motion estimation/compensation, horizontal or vertical DPCM in the residual signals can be applied to further reduce the magnitudes of the residual signals. The proposed method reduces the average bitrates of 3.5% compared with the Inter lossless coding of the H.264 standard.