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This paper describes a novel video coding scheme based on spatial resolution regulation. By comparing the R-D performance of spatially down-sampling coding scheme with standard coding schemes, the proposed coding scheme begins with coding the low-resolution edition of video sequence and subsequently coding difference video sequence when the bit-rate exceeds a threshold. The new scheme can be easily integrated into many current video codec with only slight change and improve both the coding performance and the computing complexity significantly on low bit-rate. At the same time, it allows for the flexibly spatial and rate scalability thanks to its progressive coding structure. Experimental results show that the proposed video coding scheme has better subjective and objective quality in the relatively wide range of low bit-rate.