A method of video coding using block partitioning process including a binary tree partitioning process is disclosed. The block partitioning process is applied to a block of video data to partition the block into final sub-blocks. Coding process comprising prediction process, transform process or both for the block will be applied at the final sub-blocks level. The binary tree partitioning process can be applied to a given block when an associated indicator has a first value. In another embodiment, the quadtree partitioning process is applied to a block first. The quadtree leaf nodes are further partitioned using one or more stages of binary tree partitioning process. The quadtree partitioning process can be applied to a given block recursively to generate quadtree leaf nodes until a termination condition is met.