We report the characterization using X-ray and neutron powder diffraction, transmission electron microscopy and extended X-ray absorption fine structure of a new, partially ordered rock-salt-like solid solution phase Li x Co 1Kx O: 0.075%x%0.24K0.31. The cation stacking sequence along [111] consists of alternating planes of Co and Co/Li. Nano-sized domains of this cation-ordered phase appear alongside disordered regions; domain size increases from 2 to 8 nm with increasing Li content. Compositions of ordered and disordered regions are Li-and Co-rich, respectively, and, therefore, the phase exhibits frozen-in, incipient phase separation. This microstructure could be considered as a precursor to precipitation of fully ordered, rhombohedral LiCoO 2 .