diff --git a/badges/classes/form/badge.php b/badges/classes/form/badge.php
index faa64a651e9..f5bc8f4bb8a 100644
--- a/badges/classes/form/badge.php
+++ b/badges/classes/form/badge.php
@@ -70,7 +70,7 @@ class badge extends moodleform {
         $mform->addRule('description', null, 'required');
 
         $str = $action == 'new' ? get_string('badgeimage', 'badges') : get_string('newimage', 'badges');
-        $imageoptions = array('maxbytes' => 262144, 'accepted_types' => array('web_image'));
+        $imageoptions = array('maxbytes' => 262144, 'accepted_types' => array('optimised_image'));
         $mform->addElement('filepicker', 'image', $str, null, $imageoptions);
 
         if ($action == 'new') {
diff --git a/lang/en/mimetypes.php b/lang/en/mimetypes.php
index cbcd32914fc..83f4257b334 100644
--- a/lang/en/mimetypes.php
+++ b/lang/en/mimetypes.php
@@ -74,6 +74,7 @@ $string['group:html_track'] = 'HTML track files';
 $string['group:html_video'] = 'Video files natively supported by browsers';
 $string['group:image'] = 'Image files';
 $string['group:media_source'] = 'Streaming media';
+$string['group:optimised_image'] = 'Image files to be optimised, such as badges';
 $string['group:presentation'] = 'Presentation files';
 $string['group:sourcecode'] = 'Source code';
 $string['group:spreadsheet'] = 'Spreadsheet files';
diff --git a/lib/classes/filetypes.php b/lib/classes/filetypes.php
index 99f813fa692..aec115b3aed 100644
--- a/lib/classes/filetypes.php
+++ b/lib/classes/filetypes.php
@@ -106,7 +106,8 @@ abstract class core_filetypes {
                     'groups' => array('spreadsheet')),
             'gslides' => array('type' => 'application/vnd.google-apps.presentation', 'icon' => 'powerpoint',
                     'groups' => array('presentation')),
-            'gif' => array('type' => 'image/gif', 'icon' => 'gif', 'groups' => array('image', 'web_image'), 'string' => 'image'),
+            'gif' => array('type' => 'image/gif', 'icon' => 'gif', 'groups' => array('image', 'web_image', 'optimised_image'),
+                'string' => 'image'),
             'gtar' => array('type' => 'application/x-gtar', 'icon' => 'archive',
                     'groups' => array('archive'), 'string' => 'archive'),
             'tgz' => array('type' => 'application/g-zip', 'icon' => 'archive', 'groups' => array('archive'), 'string' => 'archive'),
@@ -135,9 +136,12 @@ abstract class core_filetypes {
             'jmt' => array('type' => 'text/xml', 'icon' => 'markup'),
             'jmx' => array('type' => 'text/xml', 'icon' => 'markup'),
             'jnlp' => array('type' => 'application/x-java-jnlp-file', 'icon' => 'markup'),
-            'jpe' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image'), 'string' => 'image'),
-            'jpeg' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image'), 'string' => 'image'),
-            'jpg' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image'), 'string' => 'image'),
+            'jpe' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image', 'optimised_image'),
+                'string' => 'image'),
+            'jpeg' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image', 'optimised_image'),
+                'string' => 'image'),
+            'jpg' => array('type' => 'image/jpeg', 'icon' => 'jpeg', 'groups' => array('image', 'web_image', 'optimised_image'),
+                'string' => 'image'),
             'jqz' => array('type' => 'text/xml', 'icon' => 'markup'),
             'js' => array('type' => 'application/x-javascript', 'icon' => 'text', 'groups' => array('web_file')),
             'json' => array('type' => 'application/json', 'icon' => 'text'),
@@ -205,7 +209,8 @@ abstract class core_filetypes {
             'php' => array('type' => 'text/plain', 'icon' => 'sourcecode'),
             'pic' => array('type' => 'image/pict', 'icon' => 'image', 'groups' => array('image'), 'string' => 'image'),
             'pict' => array('type' => 'image/pict', 'icon' => 'image', 'groups' => array('image'), 'string' => 'image'),
-            'png' => array('type' => 'image/png', 'icon' => 'png', 'groups' => array('image', 'web_image'), 'string' => 'image'),
+            'png' => array('type' => 'image/png', 'icon' => 'png', 'groups' => array('image', 'web_image', 'optimised_image'),
+                'string' => 'image'),
             'pps' => array('type' => 'application/vnd.ms-powerpoint', 'icon' => 'powerpoint', 'groups' => array('presentation')),
             'ppt' => array('type' => 'application/vnd.ms-powerpoint', 'icon' => 'powerpoint', 'groups' => array('presentation')),
             'pptx' => array('type' => 'application/vnd.openxmlformats-officedocument.presentationml.presentation',
diff --git a/lib/filelib.php b/lib/filelib.php
index 36a85d87561..b2b13988647 100644
--- a/lib/filelib.php
+++ b/lib/filelib.php
@@ -1639,6 +1639,7 @@ function download_file_content($url, $headers=null, $postdata=null, $fullrespons
  *     commonly used in moodle the following groups:
  *       - web_image - image that can be included as <img> in HTML
  *       - image - image that we can parse using GD to find it's dimensions, also used for portfolio format
+ *       - optimised_image - image that will be processed and optimised
  *       - video - file that can be imported as video in text editor
  *       - audio - file that can be imported as audio in text editor
  *       - archive - we can extract files from this archive
diff --git a/lib/form/tests/filetypes_util_test.php b/lib/form/tests/filetypes_util_test.php
index 7fb1b5f95b0..355fefe4e7b 100644
--- a/lib/form/tests/filetypes_util_test.php
+++ b/lib/form/tests/filetypes_util_test.php
@@ -302,10 +302,10 @@ class filetypes_util_testcase extends advanced_testcase {
         // All these three files are in both "image" and also "web_image"
         // groups. We display both groups.
         $data = $util->data_for_browser('jpg png gif', true, '.gif');
-        $this->assertEquals(2, count($data));
+        $this->assertEquals(3, count($data));
         $this->assertTrue($data[0]->key !== $data[1]->key);
         foreach ($data as $group) {
-            $this->assertTrue(($group->key === 'image' || $group->key === 'web_image'));
+            $this->assertTrue(($group->key === 'image' || $group->key === 'web_image' || $group->key === 'optimised_image'));
             $this->assertEquals(3, count($group->types));
             $this->assertFalse($group->selectable);
             foreach ($group->types as $ext) {
@@ -317,11 +317,11 @@ class filetypes_util_testcase extends advanced_testcase {
             }
         }
 
-        // There is a group web_image which is a subset of the group image. The
-        // file extensions that fall into both groups will be displayed twice.
+        // The groups web_image and optimised_image are a subset of the group image. The
+        // file extensions that fall into these groups will be displayed thrice.
         $data = $util->data_for_browser('web_image');
         foreach ($data as $group) {
-            $this->assertTrue(($group->key === 'image' || $group->key === 'web_image'));
+            $this->assertTrue(($group->key === 'image' || $group->key === 'web_image' || $group->key === 'optimised_image'));
         }
 
         // Check that "All file types" are displayed first.
diff --git a/user/edit.php b/user/edit.php
index 7fc19ffb94e..ec1a81fba18 100644
--- a/user/edit.php
+++ b/user/edit.php
@@ -165,7 +165,7 @@ $filemanagercontext = $editoroptions['context'];
 $filemanageroptions = array('maxbytes'       => $CFG->maxbytes,
                              'subdirs'        => 0,
                              'maxfiles'       => 1,
-                             'accepted_types' => 'web_image');
+                             'accepted_types' => 'optimised_image');
 file_prepare_draft_area($draftitemid, $filemanagercontext->id, 'user', 'newicon', 0, $filemanageroptions);
 $user->imagefile = $draftitemid;
 // Create form.
diff --git a/user/editadvanced.php b/user/editadvanced.php
index 07fc5e06315..fea54a6bf08 100644
--- a/user/editadvanced.php
+++ b/user/editadvanced.php
@@ -145,7 +145,7 @@ $filemanagercontext = $editoroptions['context'];
 $filemanageroptions = array('maxbytes'       => $CFG->maxbytes,
                              'subdirs'        => 0,
                              'maxfiles'       => 1,
-                             'accepted_types' => 'web_image');
+                             'accepted_types' => 'optimised_image');
 file_prepare_draft_area($draftitemid, $filemanagercontext->id, 'user', 'newicon', 0, $filemanageroptions);
 $user->imagefile = $draftitemid;
 // Create form.
diff --git a/user/externallib.php b/user/externallib.php
index 0d7daad5fa5..90c9bd423db 100644
--- a/user/externallib.php
+++ b/user/externallib.php
@@ -574,7 +574,7 @@ class core_user_external extends external_api {
         $filemanageroptions = array('maxbytes' => $CFG->maxbytes,
                 'subdirs'        => 0,
                 'maxfiles'       => 1,
-                'accepted_types' => 'web_image');
+                'accepted_types' => 'optimised_image');
 
         $transaction = $DB->start_delegated_transaction();
 
@@ -1707,7 +1707,12 @@ class core_user_external extends external_api {
             throw new moodle_exception('noprofileedit', 'auth');
         }
 
-        $filemanageroptions = array('maxbytes' => $CFG->maxbytes, 'subdirs' => 0, 'maxfiles' => 1, 'accepted_types' => 'web_image');
+        $filemanageroptions = array(
+            'maxbytes' => $CFG->maxbytes,
+            'subdirs' => 0,
+            'maxfiles' => 1,
+            'accepted_types' => 'optimised_image'
+        );
         $user->deletepicture = $params['delete'];
         $user->imagefile = $params['draftitemid'];
         $success = core_user::update_picture($user, $filemanageroptions);