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This paper presents a MIMO preceding design for frequency-selective fading channels using the transmit and channel path correlation matrices. The effect of spatial and path correlation on the MIMO system capacity are investigated to develop the optimal linear precoder structures based on ergodic capacity criterion for uncorrelated and correlated channel paths. It is shown that in the uncorrelated case the precoder structure consists of a number of parallel precoders designed for frequency-flat fading channel paths. Performance evaluation by simulation in various MIMO channels shows that the proposed preceding scheme provides a good capacity improvement as compared to existing preceding schemes using only spatial correlation, and its performance is better in an environment with higher (spatial or path) correlation.