Cobalt was introduced into a silver matrix by ion implantation and observed by extended x-ray absorption fine structure (EXAFS) spectroscopy. In the range 0.10--0.70 at. % evidence of Co dimers dispersed in the matrix was found. The dimers are somewhat contracted with respect to the bulk Co nearest neighbor distance and distributed in a chainlike configuration with each dimer at 90 degrees from each other along opposite square faces of the Ag fcc lattice.