Method of forming a two-piece hollow cathode sputter target assembly and the assembly formed thereby. The sputter target assembly includes an outer shell having a substantially cylindrical side wall and is composed of a relatively low purity metallic material. A sputtering insert includes a substantially cylindrical side wall and is concentrically received within, and bonded to, the outer shell. The sputtering insert is composed of a relatively high purity metallic material as used for depositing a thin layer or film onto a desired substrate.