The Co-19%Zr and Co-8%Fe-19%Zr (all in atomic percentage) alloys contain two magnetic phases Co11Zr2 and Co(23)a(6), with Fe substituting Co in the ternary alloy. The presence of the phases is confirmed by the M(T) measurements with an applied field of 20 Oe. Transmission electron microscopy further supports the above observation as well as provide evidence of the presence of antiphase domains in both the alloys. The saturation magnetization values of the two alloys are 86 emu/g and 93 emu/g respectively while the 0.2% proof stresses of these alloys are determined to be 1.4 and 1.1 GPa respectively. The addition of Fe in the ternary alloy not only has improved the magnetic properties but also affected a pronounced improvement in ductility by 7%. Thus magnetic properties are governed by the magnetic anisotropy of Co11Zr2. However, the softening of the binary alloys achieved in the ternary by the addition of Fe.