1. A method of reducing an input image of an original image size (F, N) for providing a reduced image of a target image size (F n ) smaller than the original image size, wherein the input image is formed from a first palette and contains image statistics (L,H) inherent to palette index coefficients indicative of the input image, the first palette having a first palette size with a first number of colors, said method comprising the steps of: selecting a second palette size smaller than the first palette size; and color mapping the first palette based on the second palette size for providing a second palette for use in forming the reduced image, the second palette having a second number of colors smaller than the first number of colors by a reduction ratio (R).