Create transparent areas in a picture
You can create a transparent area in most pictures except in animated GIF pictures. Make these changes in an animated GIF editing program, and then insert the file again.
1. Select the picture you want to create transparent areas in.
2. On the Picture toolbar, click Set Transparent Color. Note If the Picture toolbar is not visible, click Toolbars on the View menu, and then click Picture.
3. Click the color you want to make transparent.
Note. The Set Transparent Color option is available for bitmap pictures that don't already have transparency information. It's also available for some, but not all, clip art.