Does img src="http: count as a link?

[MotoringSEO]

Hi All

I have looked in WMT and it says I am getting a lot of links from 1 affiliate - they have 100,000 pages on their site but GWT is showing me 200,000 links from their domain - each of their pages has the following code.

I think we have Nofollowed the link but does the img src="http://www.site.co.uk/affiliate/affiliation-images/470x80.gif also act as a link and if so do I need to Nofollow that too?

The image is stored on our server so the affiliate is linking to the banner image on our server.

Would something such as this affect my rankings in a negative way?

Thanks

[Chris.Menke]

Hi Motoring.  Yes, it is a link and you'd do best to nofollow it.

[MotoringSEO]

Thanks Chris

We have several affiliates that use banners that are stored on our servers, I have been told in the past you can not nofollow a link like  as it is not an <a href=""> is that not the case?</a>