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This paper introduces a new supervised segmentation algorithm for remotely sensed hyperspectral image data which integrates the spectral and spatial information in a Bayesian framework. A multinomial logistic regression (MLR) algorithm is first used to learn the posterior probability distributions from the spectral information, using a subspace projection method to better characterize noise and highly mixed pixels. Then, contextual information is included using a multilevel logistic Markov-Gibbs Markov random field prior. Finally, a maximum a posteriori segmentation is efficiently computed by the min-cut-based integer optimization algorithm. The proposed segmentation approach is experimentally evaluated using both simulated and real hyperspectral data sets, exhibiting state-of-the-art performance when compared with recently introduced hyperspectral image classification methods. The integration of subspace projection methods with the MLR algorithm, combined with the use of spatial-contextual information, represents an innovative contribution in the literature. This approach is shown to provide accurate characterization of hyperspectral imagery in both the spectral and the spatial domain.