The structure of nanocrystalline Fe-Co-O alloys produced by high-energy ball milling and subsequent low-temperature annealing were investigated by X-ray diffraction analysis, scanning and transmission electron microscopy. The magnetic properties were measured in vibrating sample magnetometers at room temperature. The mixtures of FeO and Co powders were used as starting materials. The nanocrystalline composite alloys, obtained as a result of the milling, contained FeO and -Fe with the crystallite size of 12-18 nm as well as an amorphous phase. However, alloys subjected to subsequent annealing contained Fe3O4 and -Fe phases with crystallite size of 10-30 nm, in which Co is dissolved. Unlike the starting materials the produced powders exhibit properties typical of magnetically hard alloys. The intrinsic coercive force of the annealed powders increases with increasing (Fe,Co)3O4 phase content and reaches approximately 800 Oe.