The problem of 2-D motion estimation with application to image sequence coding is considered in this paper. A four-parameter motion model, capable of describing rotation, change of scale and translation simultaneously, is proposed. The four motion parameters are estimated directly from an image sequence without the need for establishing the correspondence between pixels or features. The method is a differential one applied in conjunction with a multi-resolution iteration scheme to enhance its measuring range and efficiency. Experimental results demonstrate that the motion parameters can be estimated accurately by the method with minimal computational effort.