Ge nanocrystals (NCs) embedded in aluminum oxide were grown by RF-magnetron sputtering. Raman, high resolution transmission electron microscopy (HRTEM), selected area diffraction (SAD), and X-ray diffraction (XRD) techniques confirmed good cristallinity of the NCs from samples annealed at 800 degrees C. The average NC size was estimated to be around 7 nm. Photoluminescence (PL) measurements show an emission related to the NCs. The temperature dependence of the PL confirms the confinement phenomenon in the Ge NCs.