PURPOSE: To obtain the titled oil-contg. bearing, by dispersing a Cu alloy, Pb and free graphite in the matrix of a steel contg. specified amounts of Cu, Pb, C and one or more among Sn, Zn and P.

CONSTITUTION: Atomized iron powder is blended with electrolytic copper powder, graphite powder, Pb powder, Sn powder, Cu-Sn alloy powder, Zn powder, Cu-Zn alloy powder and Cu-P alloy powder so as to provide a composition consisting of, by weight, 15W40% Cu, 5W20% Pb, 0.1W5% C, one or more among 0.1W5% Sn, 0.1W3% Zn and 0.1W1% P, and the balance Fe with inevitable impurities. A lubricant is added to the blend, and they are press-molded and sintered. The sintered body is impregnated with oil in vacuum to obtain an oil- contg. bearing made of a sintered Fe alloy having 5W35vol% oil content and a structure contg. a Cu alloy, Pb and free graphite dispersed in the matrix.