Transition metal-based two-dimensional nanomaterials with competing magnetic states are at the cutting edge of spintronic and low-power memory devices. In this paper, we present a Fe-rich NbFe1+xTe3 layered telluride (x ≈ 0.5), which shows an interplay of spin-glass and antiferromagnetic states below the Néel temperature of 179 K. The compound has a layered crystal structure, where the NbFeTe3 layers are terminated by the Te atoms and van der Waals gaps. Bulk single crystals grown by chemical vapor transport reactions possess the (1̄01) cleavage plane suitable for the exfoliation of two-dimensional nanomaterials. Combination of high-resolution transmission electron microscopy and powder X-ray diffraction reveals the zigzag ladders of Fe atoms inside the structural layers, as well as complementary zigzag chains of the partially occupied Fe positions in the interstitial region. Fe atoms carry large effective magnetic moment of 4.85(3)μB per atom in the paramagnetic state yielding intriguing magnetic properties of NbFe1+xTe3. They include frozen spin-glass state at low temperatures and spin-flop transition in high magnetic fields indicating promising flexibility of the magnetic system and its potential control by magnetic field or gate tuning in the spintronic devices and heterostructures.