There is provided a computerized method and system of optimized video encoding of an input video sequence corresponding to a plurality of input frames, the method comprising: obtaining an input frame; performing a first encoding of the input frame using a first encoding parameter determined in accordance with a target bit-rate, giving rise to a first encoded frame; performing a second encoding of the input frame using an iterative quality-driven encoding scheme initialized with an initial second encoding parameter, the initial second encoding parameter determined based on the first encoding parameter, the second encoding performed in an attempt to seek a second encoded frame having a lower bit-rate than the first encoded frame and meeting a quality criterion relative to the first encoded frame; and in case of the second encoded frame being found, providing the second encoded frame as an output frame corresponding to the input frame.