A system and method are disclosed for decoding signals of a block of image data. The method comprises receiving a parameter or an index associated with a direction of a plurality of prediction directions and decoding a block of image data utilizing image data predicted from an adjacent block according to direction associated with the parameter. The prediction direction may be at least one of horizontal, vertical or diagonal. A system and method are also disclosed for encoding blocks of image data including a parameter or an index associated with a direction of a plurality of prediction directions.