Simultaneous determination of linear and angular positions of rotating objects is a challenging task for traditional sensor applications and a very limited set of solutions is available. The paper presents a novel approach of replacing a set of traditional linear and rotational sensors by a small set of image sensors. While the camera’s angle of view can be a limiting factor in the tracking of multiple objects, the presented approach allows for a network of image sensors to extend the covered area. Furthermore, rich image data allows for the application of different data processing algorithms to effectively and accurately determine the object’s position. The proposed solution thus provides a set of smart visual encoders emulated by an image sensor or a network of image sensors for more demanding spatially distributed tasks. As a proof of concept, we present the results of the experiment in the target application, where a 1.6 MP image sensor was used to obtain sub-degree angular resolution at 600 rpm and thus exceeding the design parameters and requirements. The solution allows for a compact, cost-effective, and robust integration into the final product.