In the block-based hybrid video coding framework, transform is applied to the residual signal resulting from intra/inter prediction. Thus in the most of video codecs, transform block (TB) size is equal to the prediction block (PB) size. To further improve coding efficiency, recent video coding techniques have supported decoupling transform and prediction sizes. By splitting one prediction block into small transform blocks, the Residual Quad-tree (RQT) structure attempts to search the best transform size. However, in the current RQT, the transform size cannot be larger than the size of prediction block. In this paper, we introduce a transform extension method by decoupling transform sizes from prediction sizes and coding sizes. In addition to getting the transform block within the current PB partition, we combine multiple adjacent PBs to form a larger TB and select best block size accordingly. According to our experiment on top of the newest reference software (ITM17.0) of MPEG Internet Video Coding (IVC) standard, consistent coding performance gains are obtained.