1Institute for Solid State Physics and Optics, Wigner Research Centre for Physics, P.O. Box 49, Budapest H-1525, HungaryTemperature dependence of the magnetic properties of Fe/Ag vacuum evaporated multilayers was studied in a wide range of layer thickness. For Fe thickness larger than 1 nm continuous magnetic layers can be found, but its hyperfine field is significantly lower than that of pure alpha-Fe at elevated temperatures. It is attributed to a decrease of the Curie temperature due to Ag impurities in the Fe layer. Below 1 nm Fe thickness magnetic relaxation and the formation of a granular alloy with 35 T average hyperfine field was observed. Magnetoresistance results indicate the presence of Fe clusters in the Ag matrix, as well.