The present invention discloses a method of fabricating rare earth-doped preforms for optical fibers. A silica soot is deposited as a layer with high porosity on an inner surface of a silica-based tube by a modified chemical vapor deposition (MCVD) process at a temperature high enough to produce the silica soot but low enough to avoid sintering of the soot into the silica-based tube. The silica-based tube is then immersed in a solution including a rare earth element and a codopant element for impregnation. The excess solution is drained and the silica-based tube is dried in a stream of chlorine and inert gas at an elevated temperature. Then, the rare earth element and the codopant element are oxidized under an oxygen partial pressure at a temperature high enough to overcome kinetic limitations against oxidation. Finally, the soot layer is consolidated while flowing a mixture of chlorides of a second codopant element and oxygen at a sintering temperature at which the second codopant element reacts with oxygen to form codopant oxide which is delivered around the rare earth element oxide deposited in the soot layer. In the method of the current invention, one or more rare earth elements are codoped with preferred codopants including but not limited to Ge, Al, P and/or B to enhance the performance of the rare earth ions. Other dopants may also be used in conjunction with the preferred dopants for modifying the refractive index of the core.