Hydrogen is a clean energy carrier and highest energy density fuel. Water gas shift (WGS) reaction is an important reaction to generate hydrogen from steam reforming of CO. A new WGS catalyst, Ce 1−x Ru x O 2−δ (0 ≤ x ≤ 0.1) was prepared by hydrothermal method using melamine as a complexing agent. The Catalyst does not require any pre-treatment. Among the several compositions prepared and tested, Ce 0.95 Ru 0.05 O 2−δ (5% Ru 4+ ion substituted in CeO 2) showed very high WGS activity in terms of high conversion rate (20.5 μmol.g −1 .s −1 at 275 • C) and low activation energy (12.1 kcal/mol). Over 99% conversion of CO to CO 2 by H 2 O is observed with 100% H 2 selectivity at ≥ 275 • C. In presence of externally fed CO 2 and H 2 also, complete conversion of CO to CO 2 was observed with 100% H 2 selectivity in the temperature range of 305-385 • C. Catalyst does not deactivate in long duration on/off WGS reaction cycle due to absence of surface carbon and carbonate formation and sintering of Ru. Due to highly acidic nature of Ru 4+ ion, surface carbonate formation is also inhibited. Sintering of noble metal (Ru) is avoided in this catalyst because Ru remains in Ru 4+ ionic state in the Ce 1−x Ru x O 2−δ catalyst.