Methods and apparatus are provided for converting a full color image to a two-color image for printing at a two-color printer capable of printing black pixels and alternate color pixels. Black pixels and alternate color pixels of the full color image will be printed as corresponding black and alternate color pixels in the two-color image. Printing in pixel areas of the two-color image which correspond to white pixels of the full color image will be inhibited, such that the white pixels of the full color image appear as corresponding background colored pixel areas of the substrate in the two-color image. A dithering algorithm is used for converting other color pixels of the full color image into the two-color image by utilizing either a combination of corresponding background colored pixel areas of the substrate and printed alternate color pixels or a combination of corresponding printed black and alternate color pixels.