In accordance with an embodiment, a method of detecting moving objects via a moving camera includes receiving a sequence of images from the moving camera; determining optical flow data from the sequence of images; decomposing the optical flow data into global motion related motion vectors and local object related motion vectors; calculating global motion parameters from the global motion related motion vectors; calculating moto-compensated vectors from the local object related motion vectors and the calculated global motion parameters; compensating the local object related motion vectors using the calculated global motion parameters; and clustering the compensated local object related motion vectors to generate a list of detected moving objects.