For moving image coding, the variable size of region coding based on local motion is more efficient than fixed size of region coding. It can be applied well to complex motions and is more stable for wide motions because images are segmented according to local motions. In this paper, new image coding method using the segmentation of motion vectors is proposed. First, motion vector field is smoothed by filtering and segmented by smoothed motion vectors. The region growing method is used for decomposition of regions, and merging of regions is decided by motion vector and prediction errors of the region. Edge of regions is excluded because of the correlation of image, and neighbor motion vectors are used evaluation of current block and construction of region. The results of computer simulation show the proposed method is superior than the existing methods in aspect of coding efficiency.