Oxide dispersion-strengthened alloy (ODS), lead-free and free-cutting brass and producing method thereof. The mass percent of components in the brass are: 52.0%-90.0% of copper, 0.001%-0.99% of phosphorus, 0.15%-0.70% of tin, 0.25%-3.0% of manganese, 0.15%-0.90% of aluminum, 0.10%-1.5% of nickel, 0.191%-0.90% of oxygen, and 0.06%-0.80% of carbon, the ratio of aluminum to oxygen not exceeding 27:24, with the balance being zinc and inevitable impurities, wherein lead is not more than 0.08%. The brass is produced by a powder metallurgy method: brass powder, copper oxide powder, and graphite micro powder are mixed evenly; 0.001%-1.5% of a forming agent is added and mixed evenly with the mixture; and then molded by compression, and sintering are performed before post-treatment.