A low loss optical waveguide of $P_{2}O_{5}-SiO_{2}$on Si substrate is produced by using the chemical vapour deposition method of $SiO_2$ thin films used in Si technology. Propagation loss of the waveguide layer was 1.65 dB/cm as produced and reduced down to 0.1 dB/cm after heat treatment at $1100^{circ}C$. By using laser lithography and reactive ion etching method $P_{2}O_{5}-SiO_{2}$ waveguide was produced and subsequently annealed at $1100^{circ}C$.As a result of this annealing the shape of the waveguide core was changed from rectangular to semi-circular form, and the propagation loss was reduced as down to 0.03 dB/cm at 0.6328$mu$m and 0.04dB/cm at 1.53$mu$m. We think that the mechanism of the reduction in propagation loss during the heat treatment is the following: 1) The hydrogen bonding in waveguide layer, which causes absorption loss, is dissociated and diffused out. 2) The roughness of the interface and the micro-structure of the waveguide layer is removed. 3) The irregularities in the cross-sectional shape of the waveguide which was induced during the lithographic process were disappeared by flowing of the waveguide core.