diff --git a/README.md b/README.md
index 7ab9ea1b..a57335b5 100644
--- a/README.md
+++ b/README.md
@@ -42,6 +42,7 @@ http://ultravideo.cs.tut.fi/#encoder for more information.
                                          0: no RDO
                                          1: estimated RDO
                                          2: full RDO
+              --mv-rdo               : Enable Rate-Distortion Optimized motion vector costs
               --full-intra-search    : Try all intra modes.
               --no-transform-skip    : Disable transform skip
               --aud                  : Use access unit delimiters
@@ -148,6 +149,7 @@ subme             | 0     | 0     | 0     | 0     | 1     | 1     | 1     | 1
 sao               | 0     | 0     | 0     | 0     | 0     | 0     | 1     | 1     | 1     | 1
 rdoq              | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 1     | 1     | 1
 transform-skip    | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 1     | 1
+mv-rdo            | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 1     | 1
 full-intra-search | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 0     | 1
 
 
diff --git a/src/Makefile b/src/Makefile
index c906f69e..289198c5 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -13,7 +13,7 @@ DLLDIR  = $(BINDIR)
 
 # Library version number
 VER_MAJOR = 2
-VER_MINOR = 1
+VER_MINOR = 2
 VER_RELEASE = 0
 
 PROG   = kvazaar
diff --git a/src/cli.c b/src/cli.c
index 31b7f35e..64b78df3 100644
--- a/src/cli.c
+++ b/src/cli.c
@@ -91,6 +91,8 @@ static const struct option long_options[] = {
   { "no-bipred",                no_argument, NULL, 0 },
   { "bitrate",            required_argument, NULL, 0 },
   { "preset",             required_argument, NULL, 0 },
+  { "mv-rdo",                   no_argument, NULL, 0 },
+  { "no-mv-rdo",                no_argument, NULL, 0 },
   {0, 0, 0, 0}
 };
 
@@ -291,6 +293,7 @@ void print_help(void)
     "                                     0: no RDO\n"
     "                                     1: estimated RDO\n"
     "                                     2: full RDO\n"
+    "          --mv-rdo               : Enable Rate-Distortion Optimized motion vector costs\n"
     "          --full-intra-search    : Try all intra modes.\n"
     "          --me <string>          : Set integer motion estimation algorithm [\"hexbs\"]\n"
     "                                     \"hexbs\": Hexagon Based Search (faster)\n"
diff --git a/src/config.c b/src/config.c
index 9dfe3002..3a044837 100644
--- a/src/config.c
+++ b/src/config.c
@@ -56,6 +56,7 @@ int kvz_config_init(kvz_config *cfg)
   cfg->rdoq_enable     = 1;
   cfg->signhide_enable = true;
   cfg->rdo             = 1;
+  cfg->mv_rdo          = 0;
   cfg->full_intra_search = 0;
   cfg->trskip_enable   = 1;
   cfg->tr_depth_intra  = 0;
@@ -278,7 +279,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
   static const char * const colormatrix_names[] = { "GBR", "bt709", "undef", "", "fcc", "bt470bg", "smpte170m",
                                                     "smpte240m", "YCgCo", "bt2020nc", "bt2020c", NULL };
 
-  static const char * const preset_values[11][26] = {
+  static const char * const preset_values[11][28] = {
       { 
         "ultrafast", 
         "pu-depth-intra", "2-3",
@@ -293,6 +294,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0", 
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL 
       },
       { 
@@ -309,6 +311,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -325,6 +328,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -341,6 +345,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -357,6 +362,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -373,6 +379,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -389,6 +396,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "0",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -405,6 +413,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "1",
         "transform-skip", "0",
         "full-intra-search", "0",
+        "mv-rdo", "0",
         NULL
       },
       {
@@ -421,6 +430,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "1",
         "transform-skip", "1",
         "full-intra-search", "0",
+        "mv-rdo", "1",
         NULL
       },
       {
@@ -437,6 +447,7 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
         "rdoq", "1",
         "transform-skip", "1",
         "full-intra-search", "1",
+        "mv-rdo", "1",
         NULL
       },
       { NULL }
@@ -631,6 +642,8 @@ int kvz_config_parse(kvz_config *cfg, const char *name, const char *value)
       return 0;
     }
   }
+  else if OPT("mv-rdo")
+    cfg->mv_rdo = atobool(value);
   else
     return 0;
 #undef OPT
diff --git a/src/kvazaar_version.h b/src/kvazaar_version.h
index aba9a2d8..de58fb6a 100644
--- a/src/kvazaar_version.h
+++ b/src/kvazaar_version.h
@@ -21,6 +21,6 @@
 ****************************************************************************/
 
 // KVZ_API_VERSION is incremented every time the public api changes.
-#define KVZ_API_VERSION 8
+#define KVZ_API_VERSION 9
 
 #endif // KVAZAAR_VERSION_H_