Highly efficient AlCrON solar selective coating has been deposited experimentally by reactive dc magnetron sputtering and heat treatment at 300°C for 2 h in air. The coating consists of an IR-reflective metallic layer, an absorption bilayer and an anti-reflection layer from substrate to top. The IR-reflective metallic layer is Al. The absorption bilayer consists of a high metal volume fraction AlCr–AlCrON cermet sublayer and a low metal volume fraction AlCr–AlCrON cermet sublayer. The anti-reflection layer is AlON. The spectral properties and thermal stability of the as synthesised AlCrON coatings were characterised, respectively. The new coating exhibits a high solar absorptance (α) of 0·926 and a low thermal emittance (ϵ) of 0·065. In addition, after heat treatment at 300°C for 500 h in air, the spectral properties of the AlCrON coating are virtually unchanged. The results indicate that the AlCrON coating has good spectral properties and thermal stability, which will be a good solar selective absorbing coating for mid-temperature concentrated solar thermal collector.