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The transmission of high definition video (HDV) has to confront large size video packets due to the high resolution of video frames. The usage of flexible macroblock ordering (FMO) to control the size of video packets for different network types causes bitrate overhead. In this paper, we propose an improved FMO algorithm that can efficiently reduce the bitrate overhead. In the proposed algorithm, all MBs are grouped in SGs based on the similarity of the transformation coefficients. Experimental results show that our algorithm can reduce the bitrate overhead significantly as compared with conventional FMOs.