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In literature, the most of the biometric hashing methods are based on randomised dimension reduction method. In this work, we propose a novel biometric hashing method based on optimal linear transformation. This optimal linear transformation is based on the within class covariance matrix and is used for dimension reduction in the proposed biometric hashing method. The proposed biometric hashing method can be used as a biometric verification system. The simulation results show that the proposed method has better performance in comparison with the proposed biometric hashing methods in the literature.