Distributed video coding (DVC) is a video coding paradigm that allows for a low-complexity encoding process by exploiting the temporal redundancies in a video sequence at the decoder side. State-of-the-art DVC systems exhibit a structural coding delay since exploiting the temporal redundancies through motion-compensated interpolation requires the frames to be decoded out of order. To alleviate this problem, we propose a system based on motion-compensated extrapolation that allows for efficient low-delay video coding with low complexity at the encoder. The proposed extrapolation technique first estimates the motion field between the two most recently decoded frames using the Lucas–Kanade algorithm. The obtained motion field is then extrapolated to the current frame using an extrapolation grid. The proposed techniques are implemented into a novel architecture featuring hybrid block-frequency Wyner–Ziv coding as well as mode decision. Results show that having references from both temporal directions in interpolation provides superior rate-distortion performance over a single temporal direction in extrapolation, as expected. However, the proposed extrapolation method is particularly suitable for low-delay coding as it performs better than H.264/AVC intra, and it is even able to outperform the interpolation-based DVC codec from DISCOVER for several sequences.