A system and method are presented for neural network based feature extraction for acoustic model development. A neural network may be used to extract acoustic features from raw MFCCs or the spectrum, which are then used for training acoustic models for speech recognition systems. Feature extraction may be performed by optimizing a cost function used in linear discriminant analysis. General non-linear functions generated by the neural network are used for feature extraction. The transformation may be performed using a cost function from linear discriminant analysis methods which perform linear operations on the MFCCs and generate lower dimensional features for speech recognition. The extracted acoustic features may then be used for training acoustic models for speech recognition systems.