Crystallized and spherical-shaped Au and Au-Ag alloy nanoparticles have been synthesized and stabilized using a fungus, F. semitectum in an aqueous system. Aqueous solutions of chloroaurate ions for Au and chloroaurate and Ag + ions (1 : 1 ratio) for Au-Ag alloy were treated with an extracellular filtrate of F. semitectum biomass for the formation of Au nanoparticles (AuNP) and Au-Ag alloy nanoparticles (Au-AgNP). Analysis of the feasibility of the biosynthesized nanoparticles and core-shell alloy nanoparticles from fungal strains is particularly significant. The resultant colloidal suspensions are highly stable for many weeks. The obtained Au and Au-Ag alloy nanoparticles were characterized by the surface plasmon resonance (SPR) peaks using a UV-vis spectrophotometer, and the structure, morphology and size were determined by Fourier transform infrared spectroscopy (FTIR), x-ray diffraction (XRD), and transmission electron microscopy (TEM). Possible optoelectronics and medical applications of these nanoparticles are envisaged.