A process for producing a sintered aluminum alloy in which dispersion of tensile strength is small and elongation property and fatigue strength are improved. In this process comprising the steps of compacting powder mixture containing rapidly solidified Al—Si powder, Al powder and Cu powder or Cu alloy powder into a green compact; sintering the green compact with optional heat treatment, Al powder having a maximum particle size smaller than a specific range, an average particle size within a specific range and specific particle size distribution, is used.