Contact material is widely used as electrical parts. Ag-CdO has a good wear resistance and stable contact resistance. But the disadvantages of Ag-Cd alloy are coarse Cd oxides and harmful metal, Cd. Then Ag-Sn alloy that has stable and fine Sn oxide at high temperature has been developed. In order to investigate the effect of Te additional that affects the formation of the oxide layer on the surface and the formation of oxide in matrix Ag, we studied the microstructures and properties of Ag-Sn-In(-Te) material fabricated by rapid solidification process. The experimental procedure were melting using high frequency induction, melt spinning, and internal oxidation. Specimens were examined and analyzed by Transmission electron microscopy(TEM), energy dispersive X-ray spectroscopy(EDS) and Vickers hardness. As a result, internal oxidation was completed even at $600^{circ}C$. Te forms coarse $In_{2}TeO_{6}$ phase and makes fine and well dispersed $SnO_{2}$ Phase. 0.3 wt% Te shows favorable properties.