Effects of multilayer structure and annealing condition on the soft magnetic properties of sputtered Fe/CoNbZr multilayers were investigated. We observed a minimum coercivity (1.1 Oe) at 5 nm thick Fe layer and the maximum permeability (2300) at 15 nm Fe layer and high saturation magnetization in the as-deposited state. As a result of increase of Fe grain size, coercivity increases with increasing Fe layer thickness. Degradation of ${mu}$ at the thin Fe layer region may be due to the intermixed phase of high magnetostriction, such as CoFe. Optimum annealing condition was obtained through annealing at 300 $^{circ}C$ for 40 min (${mu}$=2500, H$sub$c/=0.35 Oe). Enhancement of permeability was observed in the temperature range of 250∼300$^{circ}C$. These results may closely be related with lowering the anisotropy energy by lattice deformation (0.4%) and enhanced uniaxial anisotropy.