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To improve electrical and mechanical properties of electrodes for contact welding, the Cu-Al2O3nano composite powders were developed by thermo-chemical process. This method uses water-soluble copper and aluminium nitrates as the starting material and consists of four steps: the preparation of nitrates water solution, spray drying of this solution to prepare initial powder with subsequent salt decomposition heat treatment in air atmosphere to prepare the oxide powder containing CuO and Al2O3and a final hydrogen reduction of copper oxide to copper. Suggested method has shown a good result to achieve the agglomerated copper powder with about 20nm size of aluminium oxide clusters and a homogenous distribution of oxide particles.