Copy prediction is a renowned category of prediction techniques in video coding where the current block is predicted by copying the samples from a similar block that is present somewhere in the already decoded stream of samples. Motion-compensated prediction, intra block copy, template matching prediction etc. are examples. While the displacement information of the similar block is transmitted to the decoder in the bit-stream in the first two approaches, it is derived at the decoder in the last one by repeating the same search algorithm which was carried out at the encoder. Region-based template matching is a recently developed prediction algorithm that is an advanced form of standard template matching. In this method, the reference area is partitioned into multiple regions and the region to be searched for the similar block(s) is conveyed to the decoder in the bit-stream. Further, its final prediction signal is a linear combination of already decoded similar blocks from the given region. It was demonstrated in previous publications that region-based template matching is capable of achieving coding efficiency improvements for intra as well as inter-picture coding with considerably less decoder complexity than conventional template matching. In this paper, a theoretical justification for region-based template matching prediction subject to experimental data is presented. Additionally, the test results of the aforementioned method on the latest H.266/Versatile Video Coding (VVC) test model (version VTM-14.0) yield an average Bjøntegaard-Delta (BD) bit-rate savings of -0.75% using all intra (AI) configuration with 130% encoder run-time and 104% decoder run-time for a particular parameter selection.