After preparing a silver-coated copper powder wherein the surface of a copper powder having an average particle diameter of 0.1 to 100 μm is coated with silver, the silver-coated copper powder is sprayed into the tail flame region of a thermal plasma to cause silver on the surface of the copper powder to diffuse in the grain boundaries of copper on the inside of the copper powder, and thereafter, the surface of the copper powder is coated with silver to produce a metal composite powder wherein the percentage of the area occupied by silver on a cross section of the metal composite powder is 3 to 20% and wherein the surface thereof is coated with silver.