A method of reduction of metal oxide-bearing green pellets for a reducing furnace produced by a method characterized by pelletizing a feed powder comprised of a metal oxide-bearing powder and a carbon-bearing powder, wherein, when producing the green pellets, three or more types of feed powder, including at least two types of iron containing feed powder, are placed in separate storage bins, a mixing ratio of a mixture of feed powders is determined so that the mixture of said feed powder includes 20 to 80 wt % of powder particles having a size of not more than 10 μm and said feed powders are fed out from said bins, and the mixture of said feed powders is pelletized into green pellets having a porosity of not more than 0.32 using a pan type pelletizer to make green pellets, screening the green pellets by a screen to remove undersized and oversized green pellets, reducing the moisture content by a pellet dryer at a temperature of not higher than 250° C., then charging the green pellets into a rotary hearth reducing furnace and reducing by firing the green pellets while continuously conveying green pellets between unit operations.