CoFe-AgCu granular films of compositions ranging from 0.17-0.44 ferromagnetic atomic concentration were prepared by rf sputtering. The microstructure and the transport and magnetic properties suggested that this family of samples can be classified into two groups with a crossover concentration at about 32 at. %. The experimental results for samples Co 34 Fe 8 Ag 54 Cu 4 and Co 18 Fe 8 Ag 70 Cu 4 , which are representative of both different behaviors, are discussed. For the as-prepared sample with higher CoFe content, an uncompensated out-of-plane antiferromagneticlike microstructure with dominant demagnetizing interactions was observed. The particle growth through the annealing led to large in-plane ferromagneticlike clusters with dominant magnetizing interactions. The thermal dependence of the remanence-to-saturation ratio of the as-prepared and annealed samples indicated the existence of a high degree of magnetic correlations leading to a very low magnetoresistivity: In none of the cases was a Stoner-Wohlfarth behavior observed. On the contrary, for the sample with lower CoFe content, the magnetoresistivity change was much higher, and the remanence followed the expected behavior, since magnetic correlations were strongly reduced through dilution. © 1997 American Institute of Physics. ͓S0021-8979͑97͒69608-5͔In the past few years, giant magnetoresistivity ͑GMR͒ has been found in granular alloys consisting of a distribution of small ferromagnetic ͑FM͒ particles which have been randomly segregated in a nonmagnetic metallic matrix. 1 Examples of granular alloys exhibiting GMR are: 2 Co x Cu 1Ϫx , Co x Ag 1Ϫx , Fe x Ag 1Ϫx , and ͑NiFe͒ x Ag 1Ϫx . In this paper we present a study of the structural, magnetic and GMR properties of CoFe-AgCu granular alloys. We have included Fe as a minor ferromagnetic component in the largely studied Co-Ag system in order to increase GMR as previously reported, 3 and a small amount of Cu to increase immiscibility between CoFe and the nonmagnetic matrix. We have recently shown 4 the existence of an uncompensated antiferromagneticlike microstructure at volume concentrations below the percolation threshold ͓x p ϭ0.55 ͑Ref. 5͔͒ in the granular system Co 34 Fe 8 Ag 54 Cu 4 ͑xϭ0.33͒, and we have reported on magnetic interactions arising from the microstructure effecting GMR and magnetic properties. The aim of this work is to discuss that the stabilization of that magnetic microstructure is related to the ferromagnetic content and thus to the magnetic correlations.Eleven CoFe-AgCu films of compositions ranging from 0.17-0.44 ferromagnetic atomic concentration were rf sputtered onto glass microscope slides. Post-deposition phase segregation was promoted by rapidly annealing ͑0.1 s͒ at 600, 650, and 750°C. A detailed explanation on the experimental procedure is given in Ref. 6. The particle size distribution and the microstructure of the films were studied by x-ray diffraction ͑XRD͒, transmission electron microscopy ͑TEM͒, and atomic force microscopy ͑AFM͒. Images of the magnetic flux density p...