Aluminum doped iron oxide nanostructured material with hematite phase has been produced by the heat-treatment process of an amorphous precursor under air atmosphere. The nano sized precursor was synthesized by using a co-precipitation method. The heat-treated product of the precursor under reduction atmosphere was Fe3Al alloy with particle sizes around 200 nm. Powder X-ray diffraction pattern and Fourier transform infrared spectroscopy confirmed the formation of the products. That is, the intermetallic alloy, Fe3Al has really produced via a wet chemical route for first time. Magnetic measurements indicated that all the samples are soft magnets with different magnetization.