Ceria-supported palladium catalysts prepared by the deposition-precipitation method are highly active for the methanol synthesis from carbon monoxide and hydrogen in comparison with the catalyst prepared by the conventional impregnation method. Analyses by EXAFS show that palladium particles can be dispersed very well on the surface of ceria by both the methods, implying that the higher activity of the catalysts prepared by deposition-precipitation is not simply due to the particle size of palladium. Cationic palladium species are present in the samples prepared by deposition-precipitation after reduction with hydrogen at 300 degrees C, suggesting that the active species are produced by strong contact between palladium particles and the support.