Nano sized Co-20wt%Ni composite powder was synthesized by electroless chemical reduction method using metallic salt precursors and hypophosphite as a reducing agent in alkaline tartarate bath as a complexing agent. The synthesized powder provide better sinterability, mechanical, electrical and magnetic properties with homogeneous microstructure. The nano-sized powder could be obtained, which have the average particle size of 40 nm, with a saturation magnetization (B-s) of 97.95 which was increased by hear treatments of powder in hydrogen to 127 emu/g due to the exclusion of the precipitated phosphrous in the composite powder. The powder underwent cold compaction at 600 Mpa and sintering at 1050 degrees C for 30 min. The saturation induction for the sintered material of 149.3 emu/g higher than the synthesized powder and has electrical resistivity value of 7.6 mu Omega cm.