This paper presents a new technique for image reconstruction from partially received information for hybrid video coding systems using DCT and motion compensated prediction and interpolation. The technique makes use of the smoothness property of typical video signals by requiring the reconstructed samples be smoothly connected with their adjacent samples, both spatially and temporally. This is fulfilled by minimizing the differences between neighboring pixels in the current as well as adjacent frames. The optimal solution is obtained through three linear transformations. This approach can yield more satisfactory results than the existing algorithms, especially for images with large motions or scene changes.