The sensitivity of CuO dispersed on fluorite-type oxide, namely CeO2 was studied in this work. Mixed oxide sample of nanostructured CuxCe1-xO2-y of various composition were generated by step chemical precipitation method. Distinct copper species were identified as a function of copper content by X-ray photoelectron spectroscopy, X-ray powder diffraction, the special surface areas, transmission electron microscopy, scanning electron microscopy analysis, and sensing properties to CO. It was found that only small amounts of copper are sufficient to promote the sensitivity of CeO2 by several orders of magnitude, which excessive amounts of copper (Cu/(Cu+Ce)>0.12) are detrimental to the sensing properties of nanocompositions. The possible causes for this behavior are also discussed.