In this paper. wavelet transform coding for image conference is studied. Original video frames are transformed into hierarchical pyramidal images with multiresolution using the band property of wavelet transform coefficients. Moving information between neighboring frames is obtained from the low-resolution band. Also, to control the video coding procedure. a new picture set filter is proposed. This filter controls the compression ratio of each frame depending on the correlation to the reference frame by selectively eliminating less important high-resolution areas. Consequently. video quality can be preserved and bit rate can be controlled adaptively In the simulation, to test the performance of the proposed coding method, comparisons with the full search block matching algorithm and the differential image coding algorithm are made. Consequently. the proposed method shows a reasonably good performance over existing ones.