The structure, magnetic properties and magnetoresistance (MR) effect of Co20NixCu80−x alloys produced by mechanical alloying and subsequent annealing have been investigated. After milling for 5 h, a supersaturated solid solution forms for all the alloys. Co20NixCu80−x alloys annealed at 973 K for 30 min segregated into two-phases of fcc-Co and fcc-Cu. The maximum value for MR ratio, at room temperature is 4.7% at a field of 1.2 T, and at 5 K is 15% at a field of 2 T for Co20Cu80 annealed at 718 K for 30 min. The MR ratio of Co–Ni–Cu alloys decreases monotonically with increasing Ni content. The MR and its dependence on particle size are discussed.