Abstract: Today's video codecs require the intelligent choice between many coding options. This choice can efficiently be done using Lagrangian coder control. But Lagrangian coder control only provides results given a particular Lagrange parameter, which correspond to some unknown transmission rate. On the other hand, rate control algorithms provide coding results at a given bitrate but without the optimization performance of Lagrangian coder control. The combination of rate control and Lagrangian optimization for hybrid video coding is investigated. A new approach is suggested to incorporate these two known methods into the video coder control using macroblock mode decision and quantizer adaptation. The rate-distortion performance of the proposed approach is validated and analyzed via experimental results.