Aspects of the invention provide methods, computer-readable media, and apparatuses for digital processing of acoustic signals to create a reproduction of a natural or an artificial spatial sound environment. An aspect of the invention supports spatial audio processing such as extracting a center channel in up-mixing stereo sound for multi-channel loudspeaker setup or headphone virtualization. An aspect of the invention also supports directional listening in which sound sources in a desired direction may be amplified or attenuated. Direction and diffuseness parameters for regions of input channels are determined and an extracted channel is extracted from the input channels according to the direction and diffuseness parameters. A gain estimate is estimated for each signal component being fed into the extracted channel and an extracted channel may be synthesized from a base signal and the gain estimate. The input channels may be partitioned into a plurality of time-frequency regions.