In accordance with an embodiment, an image processing system comprises a discharge section, a first tray, a second tray, and a controller. The discharge section discharges a processed sheet. The first tray and the second tray vertically move to load the sheet discharged from the discharge section. The controller drives either one or both of the first tray and the second tray to carry out control to discharge a sheet to which an image forming processing is executed to one of the first tray and the second tray and carries out control to discharge a sheet to which a decoloring processing is executed to the other tray according to a type of a job received by a reception section.