This invention concerns novel compositions, useful as hydrogenation catalyst, said compositions comprising metals and metal ions such as ruthenium (Ru) or palladium (Pd) dispersed in and distributed throughout a matrix comprising an inorganic or silicon oxide network. The catalyst may be prepared by the sol-gel method; a solution of at least one catalytic metal compound is added to a solution of at least one metal alkoxide selected from Al, Ti, Nb, Zr, Ta, Si and other inorganic alkoxides, and then gelling the mixture. Promotors such as rhenium (Re), molybdenum (Mo) and tin (Sn) may be added. The catalyst may be used in the reduction of metallic acid or gamma-butyrolactone to tetrahydrofuran (THF) and 1,4-butanediol (BDO).