A video sequence consists of several hundred frames, and as a result, creating a panoramic image from these frames is a very time-consuming process. Consecutive frames have large overlap areas that do not provide much information. Therefore, some key frames must be extracted for better performance. There are a number of methods for key-frame selection that match all frames in a video sequence. We present a novel and efficient method to select key frames from video for creating a large panoramic mosaic without matching all frames. Consecutive frames are transformed and projected onto the common mosaic surface and the position of each corner of the next frame is predicted with a distinct Kalman filter on this surface. The overlap area between each predicted frame and its previous key frame is used as the criterion to select the next key frame. This method uses video information to reduce features and align frames with repeated structures more accurately. We show that this approach is an efficient preprocessing step and substantially reduces the time required to construct panorama from a video sequence.