The easiest way is to open a program like Photoshop and make an image with an alpha-channel. That means: Start with a completely transparent image and draw a circle on it. Then save it as .png
You can then just load it in your game and render it using a SpriteBatch
. It (or better your graphics card) knows how to handle the alphachannel and will keep everything but the circle completely invisible.
This way you do not have to manipulate any pixmaps at runtime and you are not limited to simple shapes like circles.