The retention of 131I on ceramic rod coated with silver nitrate followed by coating with a polyurethane membrane to be applied in brachytherapy was studied. The concentration of silver nitrate (20 g/l), the volume of 131I as a sodium iodide solution (100 µl), the pH of the reaction mixture (pH 9) etc., were optimized to get a maximum uptake on the ceramic rod. The concentration of coating solution (5%, polyurethane in tetrahydrofuran) was also optimized to obtain a minimum leaching of 131I activity in normal saline solution. After coating with a polyurethane membrane, the 131I absorbed on the ceramic rod exhibited low leachability (0.03%). This method can be applied for the preparation of 125I interstitial sources to be used in eye and prostate cancer therapy.