Mn 5 Ge 3 films are promising materials for spintronic applications due to their high spin polarization and a Curie temperature above room temperature. However, non-magnetic elements such as oxygen, carbon and nitrogen may unpredictably change the structural and magnetic properties of Mn 5 Ge 3 films. Here, we use the solid-state reaction between Mn and GeO thin films to describe the synthesis and the structural and magnetic characterization of Mn 5 Ge 3 (Mn 5 Ge 3 O y)-GeO 2 (GeO x) nanocomposite materials. Our results show that the synthesis of these nanocomposites starts at 180°С when the GeO decomposes into elemental germanium and oxygen and the resulting Ge atoms immediately migrate into the Mn layer to form ferromagnetic Mn 5 Ge 3 nanoclusters. At the same time the oxygen atoms take part in the synthesis of GeO x and GeO 2 oxides and also migrate into the Mn 5 Ge 3 lattice to form Mn 5 Ge 3 O y Nowotny nanoclusters. Our findings prove that not only carbon, but oxygen may contribute to the increase of the magnetization saturation and Curie temperature of Mn 5 Ge 3based nanostructures.