The current approach for text binarization proposes a clustering algorithm as a preprocessing stage to an energy-based segmentation method. It uses a clustering algorithm to obtain a coarse estimate of the background (BG) and foreground (FG) pixels. These estimates are usedas a prior for the source and sink points of a graph cut implementation, which is used to efficiently find the minimum energy solution of an objective function to separate the BG and FG. The binary image thus obtained is used to refine the edge map that guides the graph cut algorithm. A final binary image is obtained by once again performing the graph cut guided by the refined edges on Laplacian of the image.