We prepared iron nanoparticle-encapsulating silica (FeSi) microspheres and tested their suitability as thermal seeds for hyperthermia in cancer therapy. These microspheres were prepared by introducing a ferric ion (Fe(3+)) into microspheres of a SiO(2) gel matrix derived from the hydrolysis of tetramethoxysilane in a water-in-oil emulsion that was then heat-treated at 850 °C in an argon atmosphere. The particles obtained were 5-30 μm in size and had a saturation magnetization up to 21 emu g(-1) and a coercive force of 86-133 Oe. Heat generation in an alternating current magnetic field of 300 Oe at 100 kHz was estimated to be 7.7-28.9 W g(-1). The in vitro cell biocompatibility of the microspheres was assessed by culturing rat fibroblast Rat-1 cells in medium supplemented with microspheres containing 6.7 % of iron nanoparticles. At microsphere concentrations of <7.5 g L(-1) proliferation of Rat-1 cells was not significantly inhibited.