IMAGE PROCESSING

A method of processing video signals containing multiple images. The method comprises dividing a first image into regions and associating a first plurality of regions of the first image with a first image layer and a second plurality of regions of the first image with a second image layer. Motion estimation is performed on pixel values that are derived from pixel values associated with the first image layer, substantially in isolation from pixel values associated with the second image layer, to generate a first motion vector field, and the first motion vector field is used to perform motion-compensated processing on pixel values that are derived from pixel values associated with the first image layer. The result of the motion-compensated processing is combined with pixel values that are derived from pixel values associated with the second image layer to generate an output image.