A vector coding scheme for video transform coefficients is provided. A vector is generated to identify a group of coefficients from a block of transform coefficients that qualify for transmission according to predetermined criteria. In an illustrated embodiment, only coefficients having nonzero amplitudes are transmitted. The vector is encoded to provide a vector code word for transmission. The coefficients from the group qualifying for transmission are encoded to provide coefficient code words for transmission. The vector code word correlates the coefficient code words to coefficient locations in the block. In a preferred embodiment, the block is divided into a plurality of regions containing subsets of coefficients. A separate vector is transmitted for each region, correlating the coefficient code words to coefficient locations in the corresponding region of the block.