Algorithm for "filling" texture in a two-dimensional image

I remember looking for paper some time ago for an algorithm that could automatically and smoothly "transform" a texture from parts of an image to another part of an image.

The approach was something like the following:

You will create databases of small squares of pixels (maybe 8X8) from parts of the present image.

Then you have to select a blank pixel (the "destination" for the texture graft) and find one of the squares in your database that most closely matches the surrounding pixels. Then you color the empty pixel according to the color of the corresponding pixel in the square you find. Then you select another blank pixel and repeat until there are no blank pixels left.

Of course, this is only a vague description because I cannot find references to this algorithm to refresh my memory of the details! Can anyone please help?