Magnetite (Fe3O4) has been synthesised via a new combined route, ceramic method and mechanical milling, starting from a stoichiometric mixture of the easily accessible Fe and Fe2O3 precursors. In the first step, well crystallised magnetite has been obtained by heat treatment of the precursor homogenised mixture at lower temperature as compared to the classical route for synthesis of ferrites. In the second step, the as obtained low cost Fe3O4 has been mechanically milled. The powders have been characterised by X-ray diffraction (XRD), magnetic measurements M = f(H), scanning electron microscopy (SEM), Fourier transform infrared spectroscopy (FTIR), laser particle size analyser and differential scanning calorimetry (DSC). The nanocrystalline/nanosized powder is obtained after only 5 min of milling. A powder contamination with Fe occurs during milling and this leads to the formation of a wustite-FeO phase. The formation of the FeO phase leads to the lattice strain release. The magnetisation decreases upon increasing the milling time due to the formation of the wustite and structural disorder. (C) 2016 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.