Melt-spun Fe10Cu90 shows a negative magnetoresistance with a nearly linear
dependence on external field. The microstructure has Fe-atoms on fee-sites,
corresponding to CuFe solid solution, and in bcc alpha-Fe precipitates. Ma
gnetic data indicate the presence of magnetic couplings between magnetic cl
usters. It is argued that both microstructures, corresponding to the two lo
cations of Fe, yield a mechanism for magnetoresistance. The resistivity in
zero field shows a minimum at a temperature above the magnetic freezing or
ordering temperature determined as the peak of ac-susceptibility. Glassy dy
namics is seen from a creep of the resistivity after cooling below the free
zing temperature. A simple micromagnetic model is applied to describe the i
ncrease of magnetoresistance with the amount of precipitated alpha-Fe.