An approach is described for unsupervised segmentation of textured images. Local texture properties are extracted using local linear transforms that have been optimized for maximal texture discrimination. Local statistics (texture energy measures) are estimated at the output of an equivalent filter bank by means of a nonlinear transformation (absolute value) followed by an iterative Gaussian smoothing algorithm. This procedure generates a multiresolution sequence of feature planes with a half-octave scale progression. A feature reduction technique is then applied to the data and is determined by simultaneously diagonalizing scatter matrices evaluated at two different spatial resolutions. This approach provides a good approximation of R.A. Fisher's (1950) multiple linear discriminants and has the advantage of requiring no a priori knowledge. This feature reduction methods appears to be an improvement on the commonly used Karhunen-Loeve transform and allows efficient texture segmentation based on simple thresholding. >