A method (20) is disclosed performed in an encoder (40) for encoding video pictures into a video bit stream, the method (20) comprising: obtaining (21) a transformed version (2′; 12′, 13′) of a reference picture (2; 12, 13), by using a geometric transformation comprising at least one of: scaling, rotation, shearing, reflection, and projection; performing (22) a matching procedure at least once, the matching procedure comprising matching a reference matching area (6; 15, 16) of the reference picture (2; 12, 13) to a matching area (4; 16, 15) of a second picture (1; 13, 12) and matching a reference matching area (6′; 15′, 16′) of the transformed version (2′; 12′, 13′) to the matching area (4; 16, 15) of the second picture (1; 13, 12); and encoding (23) a block (3; 14) of the current picture (1; 11) by selecting for the block (3; 14) a first prediction area (5; 15, 16) based on the reference matching area (6; 15, 16) or a second prediction area (5′; 15′, 16′) based on the transformed reference matching area (6′; 15′, 16′), wherein the first and second prediction areas at least partly overlap the respective reference matching areas (6; 6′; 15, 16, 15′, 16′) and wherein the prediction area having lowest matching error to a corresponding matching area (4; 15, 16) of the second picture (1; 13, 12) is selected as prediction for the block. A corresponding method (30) in a decoder (50) is disclosed, and encoder (40), decoder (50), computer programs and computer program products.