The Horridge template model' is a biologically inspired motion detection model which is simple and computationally efficient. This model has been successfully implemented on several micro-sensor VLSI chips26 using greyscale pixels. The template model detects moving edges based on the difference in brightness between the edge of the moving object and the background in the spatial and temporal domains. This paper introduces an extension of the template model to incorporate both luminance and colour templates in two spatial dimensions. The luminance-chrominance colour model is used to generate both luminance and colour chrominance templates which can detect moving edges based on changes in luminance as well as colour contrast associated with a moving edge. A prototype of this extended model has been implemented from off-the-shelf components. Results from this prototype shows that luminance templates alone are unable to resolve between a group of objects moving at the same relative speed with respect to the sensor. This paper will also show that colour templates can facilitate the detection of colour boundaries. The combination of both luminance and colour templates allows more motion information to be extracted which leads to a more robust system.