How to insert circular picture in solidworks part?

I want to place a circular logo on a gear. But when I do this using sketch picture command, picture is placed in the form of a square box and unwanted white material comes along with it.

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You should use a 'decal' and take the steps to eliminate the white background. Features like this are always applied with

During the decal mode:

There are a few things to try using transparencies with your images. Either 'user defined' color removal tool or an Alpha channel image of your logo to make it appear round. The 'user defined' tool is easy but I prefer the Alpha channel approach.

I can be more specific if you any have trouble. Hope you get it!

 
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