AbstractThis paper presents an architecture which is capable of processing variable block size motion estimation (VBSME) and which is able to apply pixel precision reduction techniques in a reconfigurable way. The design has been carried out by using online arithmetic, which allows to process all motion vectors of a block in just one iteration. The system has been implemented on FPGA and just requires 7724 slices, reaching a performance of 55 4CIF frames per second (fps) in full precision and of 72 with 4 bit precision. Results for different search areas 31 x 31, 32 x 32, and 46 x 46 are presented. Using 4bit precision real time processing for HDTVp is achieved. Thanks to the reduced cost and high performance, this architecture is perfect for mobile devices.