Both forms are correct. Color and colour are correct forms, with color being American and colour British English spelling. The words are spelled differently due to American simplifications made to some spellings, which began with Webster’s dictionary from 1828. One of these simplifications was changing -our endings to -or.
Correct spelling, this exact spelling is used in all other main varieties of English.
Correct spelling, this exact spelling is used in American English.
Definition of color/colour:
noun, the property of an object, which is created by the way it reflects light, that produces different visual sensations
I love the new colour of your hair!
Sally will wear unusual color to her wedding – he has got a blue dress.
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