Method of Video Coding Using Prediction based on Intra Picture Block Copy

A method of signaling of coding mode including an IntraBC mode (Intra-block copy mode) for a picture, wherein the picture is divided into multiple coding units (CU), the method comprising:

• receiving input data associated with a current coding unit in a current picture, wherein the current coding unit is coded using a prediction mode selected from a prediction mode group comprising a Skip mode, an Inter mode, the IntraBC mode and an Intra mode;
• if the Skip mode is selected for the current coding unit:
• encoding or decoding the Skip mode using a first binary codeword with 1 bit;
• and
• encoding or decoding the current coding unit without any residue information and motion information;
• if the Inter mode is selected for the current coding unit:
• encoding or decoding the Inter mode using a second binary codeword with 2 bits;
• and
• encoding or decoding the current coding unit using temporal prediction;
• if the IntraBC mode is selected for the current coding unit:
• encoding or decoding the IntraBC mode using a third binary codeword with 3 bits;
• and
• encoding or decoding the current coding unit using Intra motion compensated prediction based on reconstructed pixels of the current picture;
• and
• if the Intra mode is selected for the current coding unit:
• encoding or decoding the Intra mode using a fourth binary codeword with 3 bits;
• and
• encoding or decoding the current coding unit using spatial prediction.