SUMMARYImage matching is an important area of research in the field of artificial intelligence, machine vision and visual navigation. This paper presents a new image matching scheme suitable for visual navigation. In this scheme, gray scale images are sliced and quantized to form sub-band binary images. The information in the binary images is then signaturized to form a vector space and the signatures are sorted as per significance. These sorted signatures are then normalized to transform the represented image pictorial features in a rotation and scale invariant form. For the image matching these two vector spaces from both the images are compared in the transformed domain. This comparison yields efficient results directly in the image spatial domain avoiding the need of image inverse transformation. As compared to the conventional correlation, this comparison avoids the wide range of square error calculations all over the image. In fact, it directly guides the solution to converge towards the estimate given by the adaptive prediction for a high speed performance in an aerial video sequence. A four dimensional solution population scheme has also been presented with a matching confidence factor. This factor helps in terminating the iterations when the essential matching conditions have been achieved. The proposed scheme gives robust and fast results for normal, scaled and rotated templates. Speed comparison with older techniques shows the computational viability of this new technique and its much lesser dependence on image size. The method also shows noise immunity at 30 dB AWGN and impulsive noise.