An Fe-8.2 % Ni-6.0 % P powder was prepared by electroless nickel plating on a carbonyl iron powder, where phosphorous appeared as a contaminant of the plating process. Because of the high phosphorous concentration, persistent liquid phase sintering was effective at temperatures higher than 1000 ~ The sintered microstructure was dramatically different from the conventional approaches, where a low concentration of phosphorous was added in the form of Fe3P. Sintering the alloy at a temperature as low as 1050 ~ for 30 min yielded a sintered density of 98.6% theoretical and rounded grains having an average grain size of 53 ttm. The rounded grains were surrounded by a large volume fraction of intergranular (Fe,Ni)3P phase, arising from the high phosphorous concentration, which slightly deteriorated the magnetic saturation but significantly increased the electrical resistivity of the alloy. Generally speaking, the magnetic saturation of the sintered alloy was improved with respect to the iron-phosphorus, iron-nickel, or iron-silicon alloys fabricated by powder processing.