This paper proposes a new quadtree-structured motion estimation method based on a phase correlation. In the conventional video coding scheme like MPEG series / H.26x, they use block-matching(BM) motion compensation and the frequency transform. But the problem of the conventional BM method in the part of motion compensation is the computational demanding task. We aim to reduce the computational times and present a novel quadtree-structured phase correlation motion estimation. Phase correlation method is very computationally efficient than the BM method. Quadtree hierarchy scheme reduces not only motion compensated errors but also the computational complexity. Through some examples, our proposed method provides a good compression performance and reduction of computational times as compared to BM method that minimizes Sum of squared difference(SSD).