Due to light condition or shadow around camera, acquired image sequence is often degraded by intensity fluctuation. This artifact is called luminance flicker. As the luminance flicker corrupts the performance of motion estimation or object detection, it should be corrected before further processing. In this paper, we analyze the flicker generation model and propose the new algorithm for flicker reduction. The proposed algorithm considers gain and offset parameter separately, and stabilizes the luminance fluctuation based on these parameters. We show the performance of the proposed method by testing on the sequence with artificially added luminance flicker and real sequence with object motion.