I would reward the dog (with treats) for being calm around the cat. And when you're not training him I would suggest you put a leash on the dog. (If the cat and the dog are in the same room). Your dog get's a BIG kick our out of chasing the cat and therefore you should never let him get away with it - you have to break the bad habbit as soon as possible.
Does the cat have some places where the dog can't reach it? (On the top of a cupboard, some shelfs at the wall, a large cat three.?). And maybe a children saftety door gate is an idea?
This is how you can train it. (If you ever want to see them snuggle together (and like eachother) the dog must respect the cat and the only way is to train him. The sooner the better..)
http://helpwithpettraining.com/train...around-cat.php
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