This paper describes a novel image coding scheme based on epitome inpainting. An epitome containing a factorized texture representation of the image is first coded and transmitted. The decoded epitome is then inpainted by propagating its structure and texture with extended H.264 Intra directional prediction modes and advanced neighbor embedding methods. The blocks to be inpainted are processed according to an adaptive scanning order which adapts to the image content and gives a higher priority to the blocks having strong structures. The inpainting step has been incorporated in the coding loop of an H.264 encoder, leading to a bitrate saving of up to 48.12% with respect to H.264 intra.