A ferromagnetic metal powder for a magnetic recording medium that combines good magnetic properties and oxidation stability, and a magnetic recording medium using the powder. A method of producing the magnetic powder comprises using oxygen to form an oxide film, then changing the state of the oxide film by using moderate gas phase activation treatment in an active gas, using, for example, CO or H2 or other such gas having reducing properties. ESCA-based measurements show that the binding energy peak of the powder is more to the low energy side compared to when the above treatment is not used, showing that the oxide film has oxidation resistance. The storage stability of a magnetic recording medium is improved by using the powder.