We have developed a new cluster deposition source, which can be applied to the formation of nanostructured thin films. By our method, clusters are created by a hollow cathode sputtering at high pressure in the range of hundreds of Pa, which are directly deposited onto substrates. A pipe target with small internal diameter of 6 mm is used, and He is injected as a carrier gas while using Ar as a sputtering gas. The cluster size can be controlled between 2 and 6 nm in diameter, and high deposition rates up to 25 nm/min for 6 nm Fe clusters are obtained on a considerably wide substrate. It is also demonstrated that the deposition of 6 nm Fe clusters produces continuous films consisting of very small grains of nearly the same size with depositing clusters.