A nitrogen gas atomized aluminum powder was consolidated by powder-in sheath rolling method. A pure aluminum tube with outer diameter of 12 mm and wall thickness of 1mm was used as a sheath. The aluminum tube filled with the aluminum powder, first, was cold-rolled to the thickness of 6mm for performing, and then consolidated by the cold rolling and/or subsequent hot rolling at 360, 460 and $560^{circ}C$. The aluminum powder compact fabricated by the sheath rolling showed high relative density more than 0.96 at any rolling conditions. The 0.2% proof stress increased with increasing hot rolling reduction and hot rolling temperature. Tensile strength was hardly affected by change in the hot rolling reduction, whereas it decreased with increasing hot rolling temperature. The powder compact showed the large elongation when cold rolling or hot rolling reduction was large. It was found that the sheath rolling was an effective method for consolidation of aluminum powder.