A method and system for dynamic or run-time reallocation of leakage current and dynamic power supply current of a processor. In one embodiment of the invention, the processor uses the variation in the leakage current of the processor to reduce the maximum current dissipation or power supply current of the processor (ICCmax). By reducing the maximum current dissipation, the system cost can be reduced as a less expensive power delivery system is required in one embodiment of the invention.