We present an asymptotic fully polynomial time approximation scheme for the two-dimensional generalization of Bin Packing, which requires packing (or cutting) a given set of rectangles from the minimum number of square bins, with the further restriction that packing the rectangles in the bins is done in two stages, as is frequently the case in real-world applications. To the best of our knowledge, this is the first approximation scheme for a nontrivial two-dimensional (and real-world) generalization of a classical one-dimensional packing problem in which rectangles have to be packed in (finite) squares. In addition to the approximability result, we obtain as a byproduct of our analysis an interesting structural result, namely the asymptotic...