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The paper proposes a novel method for coding artifact reduction in compressed images. For removing blocking artifacts, a localized DCT-based filter with condition on the similarity between surrounding blocks is considered. To reduce ringing, a localized fuzzy filter is utilized to avoid the blurry effect of linear filter and painting-like effect of conventional fuzzy filter. To enhance chroma components and reduce the color bleeding, the localized filter for luma component are implemented for the chroma components. Simulations on a wide range of compressed images are performed to verify the effectiveness of the algorithm.