1. A method for constructing an extended color gamut digital image from a limited color gamut digital image which was derived from a first extended color gamut image, comprising the steps of: a) providing a modified inverse color adjustment function which when such function operates on a limited color gamut digital image an extended color gamut digital image having reduced highlight color saturation for highlight color values when compared with corresponding color values of the first extended color gamut image is produced; and b) operating on the limited color gamut digital image with the modified inverse color adjustment function to construct the extended color gamut digital image with reduced color saturation for highlight color values that results in reduced levels of color contouring and quantization artifacts.