An image reader capable of operating in two modes for imaging a target is described. It includes an image sensor, a free-space objective lens system and an optically encoded lens system each adapted to direct light reflected from the target onto the image sensor, and a processor for processing signals from the image sensor. In one mode, the processor processes signals produced by light from the free-space objective lens system and in the other mode, the processor processes signals produced by light from the optically encoded lens system. To achieve this, the two lens systems may direct light to two different areas on the image sensor, or the lens systems may be selectively controlled to direct light from one or other of the systems onto the image sensor.