This paper describes the configuration and performance of a stable, high compression video coding scheme suitable for broadcast quality. This scheme was developed for application to high quality image packet transmission in Asynchronous Transfer Mode (ATM) networks. There are two problems in implementing image packet transmission in ATM networks, namely the achievement of a compression scheme with high coding efficiency, and the achievement of an effective compensation method for cell loss. We describe a scheme which resolves both these problems. It comprises the division of a two-dimensional spectral image signal into several sub-bands. In the case of the high frequency band, block-matching interframe prediction and Discrete Cosine Transform (DCT) are applied to achieve high compression ratio, while intraframe DCT coding is applied to the baseband. This scheme, moreover, provides a stable compensation for cell loss. It is shown that, based on this system, an original image signal of 216Mbit/s is compressed to about 1/10, and a high quality reconstructed image stable to cell loss is obtained.