This paper investigates the effect that the selection of the die material generates on the extrusion process of bimetallic cylindrical billets combining a magnesium alloy core (AZ31B) and a titanium alloy sleeve (Ti6Al4V) of interest in aeronautical applications. A robust finite element model is developed to analyze the variation in the extrusion force, damage distribution, and wear using different die materials. The results show that die material is a key factor to be taken into account in multi-material extrusion processes. The die material selection can cause variations in the extrusion force from 8% up to 15%, changing the effect of the extrusion parameters, for example, optimum die semi-angle. Damage distribution in the extrudate is also affected by die material, mainly in the core. Lastly, die wear is the most affected parameter due to the different hardness of the materials, as well as due to the variations in the normal pressure and sliding velocity, finding critical values in the friction coefficient for which the die cannot be used for more than one forming stage because of the heavy wear suffered. These results can potentially be used to improve the efficiency of this kind of extrusion process and the quality of the extruded part that, along with the use of lightweight materials, can contribute to sustainable production approaches.