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The presence of noise can dramatically affect the efficiency of video compression systems. For performance improvement, most practical video compression systems adopt a denoising filter as a pre-processing module for the video encoder, or as a post-processing module for the video decoder, but the complexity introduced by denoising can be very high. This paper first presents a recursive temporal linear minimum mean squared error (LMMSE) filter for video denoising. Based on the analysis of the hybrid video compression process, two novel schemes are presented, one for video encoding and the other for video decoding, in which the proposed recursive temporal LMMSE filter is seamlessly integrated into the encoding and the decoding processes, respectively. For both of these two schemes, the denoising is implemented with nearly no extra computation introduced. Experimental results validate the effectiveness of the proposed schemes on encoding and decoding noisy video sequences.