A tool for the precise and finished processing of a profiled cylindrical hole in a workpiece, comprising a tool provided with a guiding, cutting and deforming parts disposed in such sequence, the body of the tool having a blind axial hole therein, said axial hole being connected through a first row of radial passages to the deforming part of the tool and through a second row of radial passages to the cutting part of the tool, said cutting part of the tool having at least two rows of cutting elements including a first row and a second row thereof and a cutting rim, in the front part of said cutting rim there being provided throttle holes connected to the second row of radial passages through a by-pass channel, and means for feeding fluid under high pressure and at a high speed into the blind axial hole in the tool and thence radially outwardly through the first row of radial passages to the deforming part of the tool, whereby the fluid subjects the machined zone of the hole in the workpiece to plastic deformation and also removes the chips from the machined deformation zone.