The spin dynamics in Ni is studied by an exact diagonalization method on the ultrafast time scale. It is shown that the femtosecond relaxation of the magneto-optical response results from exchange interaction and spin-orbit coupling. Each of the two mechanisms affects the relaxation process differently. We find that the intrinsic spin dynamics occurs during about 10 fs while extrinsic effects such as laser-pulse duration and spectral width can slow down the observed dynamics considerably. Thus, our theory indicates that there is still room to accelerate the spin dynamics in experiments.PACS numbers: 75.40. Gb, 78.20.Ls, 78.47.+p The potential application of ferromagnetic materials on ultrafast time scales is attractive for information storage. Both experimentally and theoretically the ultrashort time behavior of spin dynamics in transition metals is a new and challenging area. Vaterlaus et al. [1] were the first to study the spin dynamics in ferromagnetic Gd. Employing spin-and time-resolved photo-emission with 60 ps probe pulses they found a spin-lattice relaxation (SLR) of 100±80 ps. Using femtosecond optical and magneto-optical pump-probe techniques, Beaurepaire et al [2] have studied the relaxation processes of electrons and spins in ferromagnetic Ni. They reported that the magnetization of a 22 nm thick film drops rapidly during the first picosecond and reaches its minimum after 2 ps. Recently, by time-resolved second harmonic generation (SHG), Hohlfeld et al. [3] found that even when electrons and lattice have not reached a common thermal equilibrium, the classical M (T ) curve can be reproduced for delay times longer than the electron thermalization time of about 280 fs. On the other hand, the transient magnetization reaches its minimum ≈ 50 fs before electron thermalization. Both groups used polycrystalline Ni but different pulse durations: 60 fs [2] vs 150 fs [3]. Recently even faster spin decays have been observed [4].At present, not even the mechanism for this ultrafast spin relaxation is known. Moreover, it is of great importance to know whether these results already reflect the intrinsic spin relaxation time scale or not. Theoretically, even the static ferromagnetism in transition metals has been a challenging topic as the electron correlation is very strong in these systems [5]. The theoretical treatment of the spin dynamics is limited. On the longer time scales, SLR been studied previously [6], and the theory yielded a relaxation time of 48 ps for Gd, in good agreement with the above mentioned experiment [1]. On this time scale, the main contribution results from anisotropic phononmagnon interaction. To our knowledge, so far no theoretical study has been performed about the spin dynamics of transition metals on the femtosecond time scale, which is apparently needed.For the theoretical description of ultrafast nonequilibrium charge and spin dynamics, one can either rely on the Baym-Kadanoff-Keldysh Green's function approach [7] or employing an exact diagonalization framework. In this Letter, we ...