A coating layer and a method for producing thereof, wherein the coating layer includes Al, Cr and N as main components according to formula (AlaCrb)xOyCzNq, where a and b are respectively the concentration of aluminium and chromium in atomic ratio considering only Al and Cr for the calculation of the element composition in the layer, whereby a+b=1 and 0≠a≥0.7 and 0≠b≥0.2, and where x is the sum of the concentration of Al and the concentration of Cr, and y, z and q are the concentration of oxygen, carbon and nitrogen respectively in atomic ratio considering only Al, Cr, O, C and N for the calculation of the element composition in the layer, whereby x+y+z+q=1 and 0.45≤x≤0.55, 0≤y≤0.25, 0≤z≤0.25, and wherein the coating layer exhibits 90% or more of fcc cubic phase, and compressive stress of 2.5 GPa or more, preferably between 2.5 GPa and 6 GPa.