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Interaction of iron and boron at elevated temperatures results in the formation of an E (Fe + Fe2B) eutectic phase that plays a great role in enhancing mass transport phenomena during thermal annealing and therefore in the densification of sintered compacts. When cooled down, this phase solidifies as interconnected hard and brittle material consisting of a continuous network of Fe2B borides formed at the grain boundaries. To increase ductile behaviour, a change in precipitates’ stoichiometry was investigated by partially replacing iron borides by titanium borides. The powder of elemental titanium was introduced to blend of iron and boron powders in order to induce TiB2 in situ formation. Titanium addition influence on microstructure, phase composition, density and mechanical properties was investigated. The observations were supported with thermodynamic calculations. The change in phase composition was analysed by means of dilatometry and X-ray diffraction (XRD) coupled with thermodynamic calculations.