Ab initio calculations performed for T=0 K show that in palladium clusters
below a critical size the high surface energy anisotropy stabilizes the ico
sahedral multiply twinned particle structure against the fee structure. Mod
el calculations support the appearance of ferromagnetic order for the noncr
ystallographic icosahedral symmetry with a small (0.11 mu (B)) magnetic mom
ent per atom. These results explain the recent experimental findings [Europ
hys. Lett. 38, 195 (1997)] that small free palladium clusters exhibit spont
aneous ferromagnetic order.