A method of production of inexpensive aluminum alloy is provided which enables precipitation of fine particles of Al—Fe—Si-based compounds and primary crystal Si to an aluminum alloy melt which is comprised of Si: 10 to 20 mass %, Fe: 0.5 to 4 mass %, P: 0.003 to 0.02 mass %, and further, if necessary, one or more of Mn, Ni, and Cr or furthermore, if necessary, one or more of Mg, Ti, Cr, Zr, and V, and has a balance of Al and unavoidable impurities. To the melt is added 0.01 to 1 mass %, in terms of silicide, of a substance, which includes fine particles of a metal silicide which are present as a solid phase in the melt, when the Al—Fe—Si-based compound is crystallized.