Colloidal copper (Fe-Cu) alloy was prepared in aqueous solution via sodium borohydride reduction of Cu and Fe dodecyl sulfate [Cu(DS)(2) and Fe(DS)(2)]. The synthesis performed at the critical micellar concentration induced formation of an interconnected network of Fe-Cu alloys. The material was characterized by transmission electron microscopy, electron diffraction, Mossbauer spectroscopy, and electron energy loss spectroscopy. The magnetization properties of the Fe-Cu alloy are presented.