An algorithm for blocking artifacts reduction in DCT domain for block-based image coding was developed. The algorithm is based on the projection onto convex set (POCS) theory. Due to the fact that the DCT characteristics of shifted blocks are different caused by the blocking artifacts, a novel smoothness constraint set and the corresponding projection operator were proposed to reduce the blocking artifacts by discarding the undesired high frequency coefficients in the shifted DCT blocks. The experimental results show that the proposed algorithm outperforms the conventional algorithms in terms of objective quality, subjective quality, and convergence property.