Direct preparation of high coercivity gamma iron oxide (&ggr;‐Fe2O3) thin films by chemical vapor pyrolysis techniques have been described. Films deposited at temperatures above 500 °C have the &ggr;‐ and those deposited below 500 °C have the &agr;‐Fe2O3phase. Gas phase reactions leading to oxygen deficiency in the vicinity of substrate and consequently controlledinsituoxidation of Fe3O4appear responsible for direct growth of the &ggr;‐Fe2O3film. Magnetic properties of these films are optimized by adding cobalt. High coercivity values of 3 kOe for directly deposited &ggr;‐Fe2O3films containing 6 at. % of cobalt are obtained along with reasonable values of remanence ≊2.8 kG and squareness ratio of 0.83. These values are considerably superior for magnetic recording in comparison to those for &ggr;‐Fe2O3films obtained by reduction and reoxidation of &agr;‐Fe2O3films.