Ball-milling method was applied to dissolve Fe into titanium dioxide (TiO2). X-ray diffraction indicated the starting anatase changed to a rutile-type structure with oxygen deficiency after ball milling. Transmission electron microscopy and X-ray absorption experiments were conducted to examine the possible existence of magnetic impurities in the ball-milled powders after they were leached in HCl solutions. Temperature dependence of the resistivity shows semiconducting behavior and the magnetic hysteresis loops at 5 and 300 K exhibit ferromagnetic characteristics. Fe-doped TiO2 films were also prepared by pulsed laser deposition. The magnetic properties of the films are discussed.