A sol-gel technique was applied to prepare the two-component oxide system Cu-Mg-O, where MgO plays the role of oxide matrix, and CuO is an active chemical looping component. The prepared samples were characterized by scanning electron microscopy, low-temperature nitrogen adsorption, and X-ray diffraction analysis. The reduction behavior of the Cu-Mg-O system was examined in nine consecutive reduction/oxidation cycles. The presence of the MgO matrix was shown to affect the ability of CuO towards reduction and re-oxidation significantly. During the first reduction/oxidation cycle, the main characteristics of the oxide system (particle size, crystallization degree, etc.) undergo noticeable changes. Starting from the third cycle, the system exhibits a stable operation, providing the uptake of similar hydrogen amounts within the same temperature range. Based on the obtained results, the two-component Cu-Mg-O system can be considered as a prospective chemical looping agent.