The structural and magnetic properties of thin Ni films epitaxially grown o
n Cu(001) substrates have been investigated using ab-initio local-spin-dens
ity calculations in the generalized gradient approximation. We show that th
e lattice mismatch at the Ni-Cu interface induces a tetragonal distortion o
f the Ni-films of about 6%, superposed at the free surface by an inward rel
axation of the Ni top-layer which is slightly larger than in bulk fee Ni(00
1). The magnetic moments of the Ni atoms are enhanced at the free surface,
but reduced at the Ni-Cu interface relative to the value in bulk Ni. The ef
fect of the surfactant Cu layer is examined and it is shown that this effec
t can account for the existing discrepancies between calculated and measure
d structural features of thin Ni films.