We propose a novel image segmentation model which incorporates subspace clustering techniques into a Mumford-Shah model to solve texture segmentation problems. While the natural unsupervised approach to learn a feature subspace can easily be trapped in a local solution, we propose a novel semi-supervised optimization algorithm that makes use of information derived from both the intermediate segmentation results and the regions-of-interest (ROI) selected by the user to determine the optimal subspaces of the target regions. Meanwhile, these subspaces are embedded into a Mumford-Shah objective function so that each segment of the optimal partition is homogeneous in its own subspace. The method outperforms standard Mumford-Shah models since it can separate textures which are less separated in the full feature space. Experimental results are presented to confirm the usefulness of subspace clustering in texture segmentation.