A finite element model has been developed to determine the effectiveness of a cold compression technique to reduce the large residual stresses generated from quenching solution heat treated T-section components of aluminium alloy AA7050. To compress long components, a multi-step process is required with some amount of overlap. A parametric study has been performed to determine the effect of the compression ratio, friction coefficient, length of overlap and length of the T-section component on the residual stress distribution post-quenching and after subsequent cold compression. Generally, a percentage reduction in the peak residual stress of over 90% was found. The optimal parameters for residual stress relief by cold compression have been suggested from the cases considered.