In the conventional video coding system

the distortion is always measured by Mean-square-error (MSE). However

the MSE-based distortion fails to measure the subjective difference of videos. As a result

the property and interest of human visual system (HVS) should be considered by video coder. This paper proposes a new perceptual coding method aiming at compressing the luma coefficients in terms of the eyes sensitivity. By using the pre-quantization strategy

it discards the imperceptible information and improves the compression performance of video codec without contaminating the video subjective quality. The experiment result proves that this perceptual coding method can efficiently reduce the output bit rate of AVS reference software by 8%~40% while guaranteeing the quality of decoded video.