In this study, the allotropic phase transition and its effect on the magnetic behavior of FeCo–7 wt%V alloy were investigated. It was found that γ phase is observed in the microstructure in the as-cast condition, and it diminishes after severe cold rolling (90% reduction). After annealing at temperatures higher than 500 up to 750 °C, the γ phase is observed in the structure, again. But, this phase is disappeared by annealing at temperatures above 750 °C due to the formation of vanadium-rich precipitates. Thermocalc software was used in order to elucidate the influence of vanadium percent on the stability of γ phase in Fe–Co alloys. Also, magnetic studies showed that the saturation induction is reduced by annealing at temperatures from 500 up to 750 °C, which is related to the formation of residual non-magnetic γ phase
