In this paper, A new 2-D DCT algorithm is proposed to reduce the computational amount of transform operation using the distribution of the motion compensated error signal and the bit allocation table. In the this algorithm, 2-D Walsh-Hadamard transform is directly computed and then multiplied by a constant matrix. Multiplications are concentrated on the final stage in thie algorithm, thus the computational amount is reduced in proportion to the number of transform coefficients that are excluded from quatization. The computational amount in computing only the DCT coefficients allocated to the bit allocation table is calculated. As the result, the number of multiplications is less thn the algorithm known to have the fewest number of computations when less than 0.6 bits per pixel are allocated to tranform coding for the motion compensated error image in the case of the proposed algorithm. Thus, it shows that the proposed algorithm is valid in reducing the computational loads of transform coding.