PURPOSE: The reaction between a urea, carbon monoxide and an organic hydroxyl compound is conducted in the presence of a catalyst system of a platinum metal and a halide containing a chelating agent as a co-catalyst, to give the titled compound in high selectivity on CO basis.

CONSTITUTION: Using a catalyst system which is composed of i) a platinum group metal, preferably Pd, Rh or a compound containing the same, ii) a halogen-containing compound such as metal halide or onium halide and iii) a chelate reagent, in the presence of an oxidizing agent such as molecular oxygen or organic nitro compound, a urea is allowed to react with carbon monoxide and an organic hydroxyl compound, preferably at 120W220°C and 20W300kg/cm2 to give a urethane. As the chelate reagent, is cited alpha-dioxime, 2,2'-dipyridine, O-phenanthroline, or 8-hydroxyquinoline.