Abstract: Abstract In this paper we discuss how to select appropriate source and channel rate for transporting variable bit-rate (VBR) compressed video over QoS (quality of service)-assured channels. We first formulate it as an optimal control problem of discrete linear time-delay system. Then the discrete maximum principle is used to get the optimal control. Compared to traditional solutions, the proposed algorithm is designed for the coder with continuous output rate, and can work without special requirements for the encoder and decoder buffer sizes. Theoretical analysis and experimental results show that the proposed algorithm has lower space and time complexity. Our solution can be used in both off-line and on-line coding.