MPEG is currently developing a new scalable video coding (SVC) standard which should provide compression efficiency similar to current non-scalable video coding standard. The extension of H.264/AVC hybrid video coding using motion-compensated temporal filtering (MCTF) is a current solution. This paper presents a dynamic group of picture (GOP) structure to improve the quality of the SVC coded video by using variable GOP sizes along the video sequences without the restriction of the fixed GOP size or the limited adaptive GOP size. The dynamic GOP structure keeps temporal importance information of frames in the encoded video, which helps in coding efficiency and provides better user perception. An effective GOP size determination method is also proposed in this paper. The proposed scheme has been validated by experimental results.