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A concept of a quadtree based nonsquare block coding structure is presented in this paper for the emerging High Efficiency Video Coding standard, which includes a quadtree based asymmetric motion partitioning scheme and a nonsquare quadtree transform (NSQT) algorithm. Nonsquare motion partitioning in inter frame coding provides the possibility of getting more accurate prediction results by splitting one coding block into two nonsquare prediction blocks. Contrary to the traditional symmetric motion partitions (SMP), asymmetric motion partitions (AMP) are proposed to improve the coding efficiency, especially for the coding blocks with irregular object boundaries. NSQT is designed for nonsquare prediction blocks (SMP and AMP), which combines square and nonsquare transform blocks in a unified transform structure. It exploits the directional characteristic of an image block to improve the transform efficiency. The combination of nonsquare partitions and NSQT provides high coding flexibility and low implementation cost for both encoder and decoder design. Simulation results show that about 0.9%-2.8% bit-rate saving can be achieved in terms of different configurations, and subjective quality can also be improved.