This study reports room temperature synthesis and magnetic properties of metal-ceramic composite particles. The particles constitute a core-shell structure where the core is nickel-metal, while the shell is manganese zinc ferrite (MZF). Coprecipitation was used for synthesis of MZF nanoparticles comprising the shell, whereas nickel was synthesized by hydrazine assisted reduction of nickel ions in aqueous media. A core shell structure was then obtained by heterocoagulation to form a shell of MZF around the nickel particles. Electron microscopy and x-ray diffraction confirmed nickel cores coated by MZF shells. Magnetization studies of MZF nanoparticles revealed that they were not super-paramagnetic at room temperature, as expected for such particle sizes of 20nm in size. Sintered composites of metal-ceramic particles core-shell exhibited a magnetostriction of 5ppm.