In this paper, we propose a new scheme for position coding of the atoms within the Matching Pursuit algorithm as applied to the displaced frame difference (DFD) in a hybrid video encoder. We exploit the spatial and temporal coherence of the positions of the atoms in the DFD: the atoms tend to cluster in regions where the motion prediction fails. The location of these regions is correlated over time. We use a block-based technique in which the number of atoms inside each block is coded differentially with respect to the same block in the previous frame. The atom positions inside each block are coded using the previously proposed NumberSplit algorithm. We demonstrate the effectiveness of our proposed approach on a number of video sequences.