We developed a physical vacuum deposition technique combining an on-line sputtering/evaporation process with an integrated nanocluster deposition process to prepare core-shell type nanoparticles. High magnetic moment (Fe60Co40)coreAushell and (Fe60Co40)coreAgshell superparamagnetic nanoparticles with controllable particle size of 10 – 20 nm and Au/Ag shell thickness of 1 – 3 nm were prepared successfully by using method. Au shell is not only functional for the potential biocompatibility but also the key to prevent oxidation of FeCo nanoparticles. Saturation magnetization of (Fe60Co40)coreAushell nanoparticles was found three times higher than that of iron oxide nanoparticles. This novel technique enables us to control independently the dimensions of core and shell and select individually materials for core and shell for other core-shell type nanoparticles.