The aim of this paper is to identify extended red regions in the outer galactic plane based on reddening of stars in the near-infrared. We argue that these regions appear reddened mainly due to extinction caused by molecular clouds and young stellar objects. The work presented here is used as a basis for identifying star forming regions and in particular the very early stages. An accompanying paper describes the cross-identification of the identified regions with existing data, uncovering more on the nature of the reddening.