The present invention discloses a water soluble co-polyester resin comprising a reaction product of reclaimed polyester, at least one diacid, at least one diol and at least one triacid and/or tetraacid. The present invention also discloses a water soluble co-polyester coating composition, comprising the water soluble co-polyester resin. Particularly, the present invention discloses a method of producing a water-soluble co-polyester resin from reclaimed polyester. The method comprises steps of reacting a reclaimed polyester with a diol to produce a depolymerised polyester and then reacting the depolymerised polyester with a diacid and a diol to produce a polymerised product. The polymerised product is reacted with a tri carboxylic acid or a tetra carboxylic acid to produce a water-soluble co-polyester resin. The present invention further relates to a water-soluble co-polyester coating having the water-soluble co-polyester resin. The coated films provide improved printability and metal adhesion properties.