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We propose a novel fast mode decision algorithm for H.264 encoder using AZCB(all-zero coefficients block) prediction. This fast mode decision algorithm cut down the coding complexity of H.264 by predicting all zero coefficients block without complicated RDO calculations. Extensive performance evaluation shows that the proposed algorithm can reduce encoding time by up to 53%. Additionally, this algorithm shows better coding efficiency than previous fast algorithms, especially with high quality images and low quantization parameter values.