PURPOSE: To produce a sintered Al alloy reinforced by dispersion and having high mechanical strength and dimensional accuracy by conventional sintering without carrying out hot plastic working.

CONSTITUTION: Composite Al alloy powder contg. 3-30vol.% reinforcing particles of ≤5μm particle size dispersed in the Al alloy matrix contg. 3-20wt.% at least one selected from among Cu, Mg, Si and Zn is cold rolled and sintered to ≥90% density ratio by heating at ≥530°C in vacuum or in an inert gaseous atmosphere having ≤0°C dew point under ordinary pressure. The reinforcing particles are made of at least one among an intermetallic compd., carbide, oxide, nitride, boride and silicide.