Palladium catalysts supported on metal oxides have been prepared by a coprecipitation method for the selective decomposition of methanol to CO and H-2. The catalysts whose supports are ZrO2, Pr2O3, and CeO2 are significantly active at 200-300 degrees C. Turnover frequency determined from the activity of the catalysts containing 15 wt% of Pd at 200 degrees C, increased with an increase in the binding energy of Pd 3d(5/2) for the catalysts, indicating that a positively charged Pd species, most likely Pd+, is preferable for the low-temperature decomposition of methanol. The coprecipitation method is advantageous in the preparation of catalysts containing a large amount of Pd over an impregnation method because smaller Pd particles interacting strongly with the support can be produced by the former technique.