Fe-Pd-based tubular nanostructures were prepared by direct electrodeposition into track-etched polycarbonate templates. The characterization of the electrodeposition process showed that the complexing of Pd and Fe is necessary for the co-deposition of both metals. In the as-deposited nanotubes, which exhibited an overall composition of Fe70Pd30 as determined by SEM/EDS, a gradient in the composition along the tubes was observed using a detailed TEM/EDS analysis. This was attributed to potentiostatic nature of the deposition and to different kinetic properties at the beginning of the reaction, and later on, when the reaction is diffusion controlled, to different transport properties (diffusion and convection) of the involved ionic species. The magnetic measurements showed that the Fe70Pd30 nanotubes are ferromagnetic with a high magnetization saturation of 170 emu g(-1), which makes them suitable for drug-delivery applications. The Fe70Pd30 nanotubes were successfully functionalized with a model drug, paracetamol. The proposed type of release, with an initial burst and a slower release of the remaining drug, could be suitable for applications where a fast action is required, which then has to be maintained for a certain time period. (C) 2012 Elsevier B.V. All rights reserved.