The video coding for very low bit rate has recently received considerable attention, but conventional block based transform coding schemes suffer from the blocking effect for the constraints of bit rates. In this paper, we present a video coding sysem suing multi-resolution motion estimation/compensation with variable size block(VMRME/C) and multi-resolution vector quantization(MRVQ) in wavelet transform domain for very low bit rate coding. It is shown that the presented scheme has better performance in the peak signal-to-nose ratio(RSNR) by 0.2-0.6 dB as well as subjective quality than that of conventional block based transform video coding techniques(especially, H. 263 which is DCT based video coding).