Motion-based segmentation is an important task in object-oriented video applications. Different approaches to motion segmentation with level sets. have been proposed. The key features of level sets representation are its ability to handle variations in the topology of the segmentation and its numerical stability. These approaches rely on certain prior information to perform motion segmentation. We present a new algorithm for segmenting an image into distinct regions of homogeneous motion. The two problems of motion estimation and motion segmentation are jointly solved without need of prior information. We provide experimental results on image sequences with synthetic and natural motion.