We have studied microstructural, magnetic and electrical transport properties of melt-spun Cu90Co5Fe5 granular alloys. XRD results show the phase formation and the decomposition of the Cu-Co (Fe) solid solution, occurred by the annealing of the samples at a certain temperature. AFM (atomic force microscopy) investigation demonstrates the distribution of particles size and MFM (magnetic force microscopy) directly shows the ferromagnetic granules on the copper matrix. These results are corroborated by the magnetic properties of the samples. Magnetic and electrical transport properties have been studied in the temperature range 15-300 K through ac susceptibility and dc resistivity measurements in the presence of magnetic field. The measured magnetoresistance of the samples reaches the highest value at an optimum annealing temperature. (c) 2005 Elsevier B.V All rights reserved.