View synthesis technique is essential for FTV (Free viewpoint TV) systems. In this paper, we propose a multi-step view synthesis algorithm to efficiently reconstruct an arbitrary view from limited number of known views of a 3D scene. We describe an efficient image rectification procedure which guarantees that an interpolation process produces valid views. This rectification method can be extended to multi-view images. Since, it transforms only one image. Then, to generate high quality intermediate views, we use an efficient dense disparity estimation algorithm with occlusion handling. Main concept of the algorithm is based on the region dividing bidirectional pixel matching. Estimated disparity vectors are used to synthesize intermediate view of stereo images with occlusion handling. Experimental results show that the performance is superior to other approaches.