Recently, DVC (Distributed Video Coding) techniques are drawing a lot of interests as one of the future research works to achieve low complexity encoding in various applications. But, due to the limited computational complexity, the performances of DVC algorithms are inferior to those of conventional international standard video coders, which use zig-zag scan, run length code, entropy code and skipped macroblock. In this paper, in order to overcome the performance limit of the DVC system, the distortion for every block is estimated when side information is found at the decoder and then we propose a new selective block encoding scheme which provides the encoder side with the motion information for the highly distorted blocks and then allows the sender to encode the motion compensated frame difference signal. Through computer simulations, it is shown that the coding efficiency of the proposed scheme reaches almost that of the conventional inter-frame coding scheme.