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The authors present a method of generating a new nonorthogonal base which can be used in signal representation. From an arbitrary N-dimensional orthonormal vector set (c1, c2, . . ., cN), a special normalised nonorthogonal vector set (x1, x2, . . ., xN) has been constructed, in which any two vectors have the given percentage of correlation. This vector set can be used as an optimal nonorthogonal base which has many applications in digital signal processing, optimal image representation and other areas.