We present a digital signal processing technique that reduces the speckle content in reconstructed digital holograms. The method is based on sequential sampling of the discrete Fourier transform of the reconstructed image field. Speckle reduction is achieved at the expense of a reduced intensity and resolution, but this tradeoff is shown to be greatly superior to that imposed by the traditional mean and median filtering techniques. In particular, we show that the speckle can be reduced by half with no loss of resolution (according to standard definitions of both metrics). Â© 2007 Optical Society of America.