Method and apparatus for complexity reduction of video coding using merge with MVD mode

A method and apparatus for video coding using MMVD mode are disclosed. According to this method, a base merge MV is determined from a merge list. A set of expanded merge candidates is determined according to a set of steps and a set of directions by adding pairs of the step and direction to the base MV. At least one combination of the set of steps and the set of directions is excluded in a partial set of expanded merge candidates. The partial set of expanded merge candidates are reordered according to template matching costs measured between a template of the current block and a template of a corresponding reference block for in the partial set of expanded merge candidates. The current block is encoded or decoded by using motion information comprising a reordered partial set of expanded merge candidates.