Can you please take a moment to answer the below questions about SQL Server
What version of SQL Server are you running? The
image datatype is/being deprecated so won't be there in future versions.
To answer your question though, it's a variable-length binary column, so you can store any image format you like, as long as what you are returning it to understands what it is then you should be ok:
I understand your hands may be tied, and depending on your application, I would recommend not storing images in the database. If you can try instead storing a path to an image, and have the image itself sitting on a file or web server somewhere. This will free up resources on your database server for database things.