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An adaptive algorithm for extracting foreground objects from background in videophone or videoconference applications is presented. The algorithm uses a neural network architecture that classifies the video frames in regions of interest (ROI) and non-ROI areas, also being able to automatically adapt its performance to scene changes. The algorithm is incorporated in motion-compensated discrete cosine transform (MC-DCT)-based coding schemes, allocating more bits to ROI than to non-ROI areas. Simulation results are presented, using the Claire and Trevor sequences, which show reconstructed images of better quality, as well as signal-to-noise ratio improvements of about 1.4 dB, compared to those achieved by standard MC-DCT encoders.