An oxide dispersion strengthened (ODS) ferritic steel with nominal composition Fe-14Cr-5Al-3W-0.4Ti-0.25Y(2)O(3)-0.6ZrO(2) was produced by mechanical alloying (MA), based on a prealloyed grade Fe-14Cr-5Al-3W steel with the addition of Ti element, Y2O3 and ZrO2, and subsequent consolidation by means of field assisted hot pressing (FAHP). The microstructure and the mechanical properties were analyzed and compared with a reference material with nominal composition Fe-14Cr-5Al-3W-0.4Ti-0.25Y(2)O(3). The addition of zirconia increased the volume fraction of the smallest and equiaxed ferritic nano-grains and decreased the quantity of larger aluminum nano-oxides within the ferritic matrix, promoting the formation of fine zirconium nano-oxides and leading to the enhancement of the mechanical properties of the alloy.