The synthesis of ultrafine powders in the system nAl(2)O(3) . mNiO-Ni by heterophase interaction in aqueous solutions followed by calcination in air and reduction in H-2 is reported. Specific area of the powders was in the range 30 to 80 m(2) g(-1), being dependent on the composition and on the heat-treatment schedule. Sintered ceramic-metal composites with fracture toughness in excess of 10 MPa.m(1/2) were prepared.