Al1−xFexN1−δ thin films with 0≤x≤13.6% were deposited by dc magnetron co-sputtering at room temperature (RT). It is found that Fe atom will substitutes the Al atom in the lattice when x≤1.2%, while it will embed into the interstice of the lattice at larger Fe content. RT ferromagnetism was observed in all doped samples. A maximum saturated magnetization 2.81emu/cm3 of the film is found to be induced by AlFeN ternary alloy when x=1.2%.