A method for producing a permanent magnet, comprising the step: (a) providing a powder of a magnetic material, (b) coating the powder particles with a coating of a diamagnetic or paramagnetic coating material, (c) compressing the coated particles to form a pressed part, (d) heat treatment to sinter the coating material at a temperature less than a temperature suitable for sintering the magnetic material, while the coating material transfers to a matrix of a diamagnetic or paramagnetic material, which embeds the particles of the magnetic material, and (e) magnetizing the magnetizable material in an external magnetic field, wherein the steps (c), (d) and (e) are carried out in any order successively or at the same time in any desired combination. The nanostructured permanent magnet that can be produced by mean of said method comprises cores of a permanently magnetic material having a mean particle diameter of no more than 1 μm and a matrix of a diamagnetic or paramagnetic material in which the cores are embedded.