A method is described for preparing a catalyst precursor suitable for use in the Fischer-Tropsch synthesis of hydrocarbons including 10 to 40% by weight of cobalt oxide crystallites and 0.05 to 0.5% by weight of a precious metal promoter, dispersed over the surface of a porous transition alumina wherein the surface of the transition alumina has been modified by inclusion of 0.25 to 3.5% wt magnesium, including the steps of: (a) forming a modified catalyst support by impregnating a transition alumina with a magnesium compound, drying and calcining the impregnated alumina in a first calcination at a temperature ≦600° C. to convert the magnesium compound into oxidic form, and (b) forming a catalyst precursor by impregnating the modified catalyst support with a cobalt compound and precious metal promoter compound, drying and calcining the impregnated catalyst support in a second calcination to convert the cobalt compound to cobalt oxide.