Structural, magnetic and magnetostrictive properties of sintered aluminium-substituted cobalt ferrite, CoAlxFe2-xO4 (x = 0.0, 0.1, 0.20, 0.30), derived from nanosized powders synthesized by a citrate-gel method, have been investigated. The sample with x = 0.1 is found to exhibit higher maximum magnetostriction strain at relatively lower magnetic fields (230 ppm at 286 kA/m) than that obtained for the unsubstituted cobalt ferrite (217 ppm, at 446 kA/m). All the Al-substituted compositions show larger strain sensitivity (d lambda/dH) at low magnetic fields compared to that for the unsubstituted cobalt ferrite. The variation of the magnetostriction coefficient as well as the strain sensitivity with Al content is likely to be due to the changes in the cation distribution in the tetrahedral and octahedral sites of the spinel lattice along with the associated changes in the magnetocrystalline anisotropy. The magnetostriction coefficient of x = 0.1 could be further enhanced to 306 ppm (at 220 kA/m) after a magnetic field annealing at 300 degrees C. A very high strain sensitivity of 4.5 x 10(-9) m/A is obtained for the magnetically annealed sample, larger than that reported for any substituted cobalt ferrite samples. The combination of high magnetostriction coefficient and strain sensitivity is suitable for device applications.