A region of interest is set within an image, the region of interest is tracked along motion of an object marked out within the image, and coding is performed in a manner that image quality differs between the region of interest and a region other than the region of interest. A wavelet transform unit applies a low-pass filter and a high-pass filter in the respective x and y directions of an original image, and divides the image into four frequency sub-bands so as to carry out a wavelet transform. A quantization unit quantizes, with a predetermined quantizing width, the wavelet transform coefficients outputted from the wavelet transform unit. A motion detector detects the motion of an object. A ROI setting unit moves a ROI region according to this motion of an object. In the case of moving images where a viewpoint changes, the background may be separated from the object and then the ROI region may be moved according to the motion of the object and the motion of the background.