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In Wyner-Ziv video coding (WZVC) (a special form of distributed video coding) the heavy work of motion estimation is shifted to the decoder. Unlike conventional video systems, such a scheme allowed for new emerging technologies that require low-complexity encoders. A key factor to the performance of WZVC is the quality of the side information (SI) present at the decoder which heavily depends on the key frame separation. For this reason, the group of pictures (GOP) size plays a significant role in the coding efficiency of the system. In this paper, we focus on the control of GOP size in transform-domain WZVC with feedback channel. We present a novel algorithm that performs online selection of the GOP size relying on past system behavior. Our proposed algorithm incurs minimal delays to the system making it suitable for real-time applications.