For service interworking, scalability is an essential features of a generic video coder. Layered coding achieves scalability by splitting the video information into different layers which could be coded independently. In this respect, subband coding is suitable for layering. In this paper, we presented a layered coding architecture based on subband coding. The base layer provides an image of lower resolution while the enhancement layer (together with the base layer) gives a higher resolution image. The base layer can be transmitted in a high priority channel in an ATM environment to provide cell loss resilience.