The composite materials of nickel and with yittria stabilized zirconia (YSZ) were prepared by the two classic routes, e.g. by mixing of the nickel oxide or fine nickel powder with the YSZ powder and by the gel-coprecipitation method from the aqueous solutions of corresponding chlorides by ammonia. The products of the coprecipitation were dried (120°C), calcined (950°C), milled, sintered (1300°C) and reduced in a gas mixture of Ar/4 vol% ▫$H_2$▫ at 1000°C. The coprecipitated products at the fracture reveal finer microstructure with particle sizes of around one micrometer. Calculations based on XRD measurements infer that these paraticles are composed of around 10-20 nm large YSZ and around 65-70 nm large Ni crystallites.