The saturation magnetization of very dilute Pd-Fe alloys is proportional to the concentration (c ≤ 0.2 at. %) and leads to an average moment of 10 µB/Fe atom. The Curie constant deduced from Curie-Weiss law (1 K < T < 4.2 K) is also proportional to c and gives an effective moment of 13 µB. The ferromagnetic state begins to disappear below ≈ 0.1 %. This critical concentration corresponds to an average distance of 15-20 Å beyond which two impurity atoms may interact antiferromagnetically