1. Method implemented on a computer having a processor and a memory coupled to said processor for compressing a digitally coded video frame sequence, comprising the steps of a, dividing a given frame into blocks, b, optionally, further dividing individual blocks into smaller blocks, c, modifying the information content of selected blocks relying on information contained in a neighbouring block or blocks, d, generating transformed blocks by carrying out on the selected blocks a transformation (DCT) that-converts spatial representation into frequency representation, and finally e, encoding the information content of the transformed blocks by entropy coding, characterised by that i, compressibility analysis is performed on said selected blocks before carrying out the transformation specified in step d, and, depending on the result of the analysis, ii, steps c, and d, are carried out on the block or iii, optionally, the block is further partitioned into sub-blocks, and the compressibility analysis specified in step i, is performed again on the blocks resulting from individual partitioning, and iv, the block partitioning that will potentially yield the best results is chosen relying on results given by steps i and iii, and finally v, the transformation specified in step d, is carried out using the block partitioning with the best potential results, relying on the prediction specified in step c, wherein at least some of steps a through e are performed using said processor.