A cutting tool includes a substrate on which at least on the functioning parts of the surface thereof a thin, adherent, hard and wear resistant coating is applied, wherein the coating includes a laminated multilayer of alternating PVD or PECVD metal oxide layers, Me1X+Me2X+Me1X+Me2X . . . , where at least one of Me1X and Me2X is a metal oxide+metal oxide nano-composite layer composed of two components with different composition and different structure which components include a single phase oxide of one metal element or a solid solution of two or more metal oxides, wherein the layers Me1X and Me2X are different in composition or structure and have individual layer thicknesses larger than about 0.4 nm but smaller than about 50 nm and where said laminated multilayer layer has a total thickness of between about 0.2 and about 20 μm.