As the next generation standard of video coding, the High Efficiency Video Coding (HEVC) is intended to provide significantly better coding efficiency than all existing video coding standards. To improve the coding efficiency of intra frame coding, up to 34 intra prediction modes are defined in HEVC. The best mode among these pre-defined intra prediction modes is selected by rate-distortion optimization (RDO) for each block. If all directions are tested in the RDO process, it will be very time-consuming. To alleviate the encoder computation load, this paper proposes a new method to reduce the candidates in RDO process. In addition, the direction information of the neighboring blocks is made full use of to speed up intra mode decision. Experimental results show that the proposed scheme provides 20% and 28% time savings in intra high efficiency and low complexity cases on average compared to the default encoding scheme in HM 1.0 with almost the same coding efficiency. This algorithm has been proposed to HEVC standard and partially adopted into the HEVC test model.