Recently, precision forging techniques are applied to manufacture spur gears. Compared to conventional machining, they produce parts of better mechanical properties and less residual stresses with a much higher production rate. In the present investigation a rigid-plastic three dimensional finite element method was applied to analyze hot forging and cold sizing of a spur gear by closed dies. The involute curve of a tooth profile was approximated by a circle close to the curve. Results of the analyses make it possible to predict local strengths of the gear die failure and an appropriate preform for cold sizing. It was found that the preform for cold sizing. It was found that the preform for the cold sizing is the most important because it determines whether the gears especially teeth can be successfully formed.