A method for representing a digital image having color values with an extended color gamut in a storage color space having a limited color gamut comprising the steps of: adjusting the color values of the extended color gamut digital image to fit within the limited color gamut to form a limited color gamut digital image; representing the limited color gamut digital image in the storage color space; determining a clipped limited color gamut digital image in which highly quantized regions in the limited color gamut digital image have been clipped; determining a residual image representing a difference between the extended color gamut digital image and the clipped limited color gamut digital image; and associating the residual image with the limited color gamut digital image in the storage color space such that the associated residual image and the limited color gamut digital image in the storage color space are adapted to be used to form a reconstructed extended color gamut digital image.