diff --git a/lib/doc/Customization.lyx b/lib/doc/Customization.lyx
index 12958ddd78..1b5f86684a 100644
--- a/lib/doc/Customization.lyx
+++ b/lib/doc/Customization.lyx
@@ -1,5 +1,5 @@
 #LyX 2.2 created this file. For more info see http://www.lyx.org/
-\lyxformat 495
+\lyxformat 497
 \begin_document
 \begin_header
 \origin /systemlyxdir/doc/
@@ -24112,6 +24112,47 @@ $$Extension
 \end_inset
 
  The file extension (including the dot).
+\change_inserted -195340706 1437418878
+
+\end_layout
+
+\begin_layout Description
+
+\change_inserted -195340706 1437418878
+\begin_inset Flex Code
+status collapsed
+
+\begin_layout Plain Layout
+
+\change_inserted -195340706 1437418878
+$$pngOrjpg
+\end_layout
+
+\end_inset
+
+ This will be the string 
+\begin_inset Quotes eld
+\end_inset
+
+jpg
+\begin_inset Quotes erd
+\end_inset
+
+ if the file is in JPEG format, otherwise it will be the string 
+\begin_inset Quotes eld
+\end_inset
+
+png
+\begin_inset Quotes erd
+\end_inset
+
+.
+ This is useful to avoid uneeded conversions for output formats that support
+ both PNG and JPEG fomats.
+ The predefined RasterImage template uses this macro for the PDFLATeX output
+ format.
+\change_unchanged
+
 \end_layout
 
 \begin_layout Description
diff --git a/lib/external_templates b/lib/external_templates
index 0eef01bdae..7eefbb67e9 100644
--- a/lib/external_templates
+++ b/lib/external_templates
@@ -86,11 +86,7 @@ Template RasterImage
 	# what the template can provide him with.
 	HelpText
 		A bitmap file.
-		Use this template to include bitmap images of any kind except
-		photos in JPEG format: These will be uncompressed by this
-		template, therefore it is better to include them with a
-		graphics inset, since the graphics inset preserves the
-		compression if the pdflatex compiler is used.
+		Use this template to include bitmap images of any kind.
 	HelpTextEnd
 	# ANY file type can be displayed as a RasterImage.
 	# Specifically, LyX will attempt to interrogate the file itself
@@ -134,10 +130,10 @@ Template RasterImage
 		TransformOption Extra  ExtraOption
 		Option Arg "[$$Extra,$$Rotate,$$Resize,$$Clip]"
 		Product "\\includegraphics$$Arg{$$AbsOrRelPathMaster$$Basename}"
-		UpdateFormat png
-		UpdateResult "$$AbsPath$$Basename.png"
+		UpdateFormat "$$pngOrjpg"
+		UpdateResult "$$AbsPath$$Basename.$$pngOrjpg"
 		Requirement "graphicx"
-		ReferencedFile pdflatex "$$AbsPath$$Basename.png"
+		ReferencedFile pdflatex "$$AbsPath$$Basename.$$pngOrjpg"
 	FormatEnd
 	Format Ascii
 		Product "$$Contents(\"$$AbsPath$$Basename.asc\")"
diff --git a/src/insets/ExternalSupport.cpp b/src/insets/ExternalSupport.cpp
index 6d009a5dd2..b5afc0c1d9 100644
--- a/src/insets/ExternalSupport.cpp
+++ b/src/insets/ExternalSupport.cpp
@@ -83,6 +83,21 @@ string const doSubstitution(InsetExternalParams const & params,
 			    bool external_in_tmpdir,
 			    Substitute what)
 {
+	string result = s;
+	if (what != PATHS && contains(result, "$$pngOrjpg")) {
+		// This is for raster images and pdflatex:
+		// Since pdflatex supports both jpg and png, we choose the best format:
+		// jpg if the original file is jpg to retain the compression, else png.
+		string format = formats.getFormatFromFile(params.filename);
+		if (format == "jpg")
+			result = subst(result, "$$pngOrjpg", "jpg");
+		else
+			result = subst(result, "$$pngOrjpg", "png");
+	}
+
+	if (what == FORMATS)
+		return result;
+
 	Buffer const * masterBuffer = buffer.masterBuffer();
 	string const parentpath = external_in_tmpdir ?
 		masterBuffer->temppath() :
@@ -94,7 +109,6 @@ string const doSubstitution(InsetExternalParams const & params,
 			onlyFileName(filename), string());
 	string const absname = makeAbsPath(filename, parentpath).absFileName();
 
-	string result = s;
 	if (what != ALL_BUT_PATHS) {
 		string const filepath = onlyPath(filename);
 		string const abspath = onlyPath(absname);
@@ -235,7 +249,8 @@ void updateExternal(InsetExternalParams const & params,
 			return; // FAILURE
 	}
 
-	string const to_format = outputFormat.updateFormat;
+	string const to_format = doSubstitution(params, buffer,
+		outputFormat.updateFormat, false, external_in_tmpdir, FORMATS);
 	if (to_format.empty())
 		return; // NOT_NEEDED
 
diff --git a/src/insets/ExternalSupport.h b/src/insets/ExternalSupport.h
index 472b82ebc9..1000735fb9 100644
--- a/src/insets/ExternalSupport.h
+++ b/src/insets/ExternalSupport.h
@@ -37,7 +37,8 @@ void editExternal(InsetExternalParams const & params,
 enum Substitute {
 	ALL,
 	PATHS,
-	ALL_BUT_PATHS
+	ALL_BUT_PATHS,
+	FORMATS
 };
 
 /** Substitute meta-variables in string \p s, making use of \p params and