Very low bit-rate video coding has recently become one of the most important areas of image communication and a large variety of applications have already been identified. Since conventional approaches are reaching a saturation point, in terms of coding efficiency, a new generation of video coding techniques, aiming at a deeper “understanding” of the image, is being studied. In this context, image analysis, particularly the identification of objects or regions in images (segmentation), is a very important step. This paper describes a segmentation algorithm based on split and merge. Images are first simplified using mathematical morphology operators, which eliminate perceptually less relevant details. The simplified image is then split according to a quad tree structure and the resulting regions are finally merged in three steps: merge, elimination of small regions and control of the number of regions.