The present invention relates to a novel method for preparing a new type of catalyst for the oxidation of CO in a reactant gas or air. The method provides the preparation of a catalyst having nano-sized metal particles and a capping agent deposited on a solid support. The size and distribution of the metal particles can be easily controlled by adjusting reaction condition and the capping agent used. The catalyst prepared has high activity at low temperature toward selective oxidation of CO and is stable over an extended period of time. The catalyst can be used in air filter devices, hydrogen purification processes, automotive emission control devices (decomposition of NOx, x is the integer 1 or 2), F-T synthesis, preparation of fuel-cell electrode, photocatalysis and sensors.