To produce an Ag-Cu alloy powder excellent in electric conductivity and preservability at high yield by classifying powder of an Ag-Cu alloy having a specified compsn. obtd. by an inert gas atomizing method under specified conditions.

The molten body of an Ag-Cu alloy having a compsn. of AgxCuy [0.001≤X≤0.4, 0.6≤y≤0.999 and X+Y=1 (by atom)] is pulverized by a gas atomizing method in an inert gas atmosphere essentially consisting of He to produce Ag-Cu alloy grains in which the average grain size is regulated to 3 to 25μm, the content of O2 is regulated to 0.0001 to 0.2wt.%, and the concn. of Ag in the surface > the average concn. of Ag in the grains. This grains are classified in a classifying chamber in which the temp. in the chamber is regulated to 3 to 50°C and the relative humidity is regulated to <50%. The Ag-Cu alloy grains in which the content of oxygen in the surface is regulated to 0.005 to 2mg/cm2 and the content of water to be adsorbed in the surface is regulated to 0.0001 to 0.1mg/cm2 and excellent as the raw material for an electrically conductive paste compsn. can be produced.