High iron impurity affects the castability and the tensile properties of the recycled Al-Si alloys due to the presence of the Fe containing intermetallic β-Al9Fe2Si2 phase. To date only Mn addition is known to transform the β-Al9Fe2Si2 phase in the Al-Si-Fe system. However, for the first time, as reported here, it is shown that β-phase transforms to the ω-Al7Cu2Fe phase in the presence of Cu, after solutionization at 793 K. The ω-phase decomposes below 673 K resulting into the formation of θ-Al2Cu phase. However, the present thermodynamic description of the Al-Si-Fe-Cu system needs finer tuning to accurately predict the stability of the ω-phase in these alloys. In the present study, an attempt was made to enhance the strength of Al-6wt%Si-2wt%Fe model recycled cast alloy with different amount of Cu addition. Microstructural and XRD analysis were carried out in detail to show the influence of Cu and the stability range of the ω-phase. Tensile properties and micro-hardness values are also reported for both as-cast and solutionized alloys with different amount of Cu without and with ageing treatment at 473 K. The increase in strength due to addition of Cu, in Fe-rich Al-Si alloys is promising from the alloy recyclability point of view.