An MPEG-4 encoder utilizing an H.263 multimedia chip. The MPEG-4 encoder includes a DC (Direct Current) predictor for predicting a DC component of the image frame encoded by an H.263 standard upon receiving a prescribed MPEG-4 quantization value, and an MPEG-4 reconstruction image memory for converting the H.263 reconstruction image into an MPEG-4 reconstruction image, and storing the MPEG-4 reconstruction image. The MPEG-4 encoder removes spatial redundancy from source image data entered in frame units using a prescribed H.263 quantization value, predicts a DC component of an image frame having no spatial redundancy using a prescribed MPEG-4 quantization value, performs a VLC (Variable Length Coding) process on the image frame using the predicted DC component, and outputs the VLC-processed image frame in the form of an MPEG-4 bit stream. The MPEG-4 encoder reconstructs the image frame having no spatial redundancy, stores the reconstructed image frame, converts the reconstructed image frame into an MPEG-4 frame, stores the MPEG-4 frame, compares the stored image frame with a newly-entered next frame, and removes temporal redundancy according to a result of the comparison.