A method for manufacturing a sintered alloy having austenitic structure, comprising the steps of: preparing iron alloy powder A consisting of, in percentage by mass, Cr: 25 to 45, Ni: 5 to 15, Si: 1.0 to 3.0, C: 0.5 to 4.0, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities; preparing iron alloy powder B consisting of, in percentage by mass, Cr: 12 to 25, Ni: 5 to 15, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities; preparing iron-phosphorus powder consisting of, in percentage by mass, P: 10 to 30 and the balance of Fe plus unavoidable impurities or copper-phosphorus powder consisting of, in percentage by mass, P: 5 to 25 and the balance of Cu plus unavoidable impurities, nickel powder, copper powder or copper-nickel alloy powder, and graphite powder; blending raw material powder, consisting of, in percentage by mass, Cr: 10.37 to 39.73, Ni: 5.10 to 24.89, Si: 0.14 to 2.52, Cu: 1.0 to 10.0, P: 0.1 to 1.5, C: 0.18 to 3.20, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities by mixing the iron alloy powder A with the iron alloy powder B so that a ratio of the iron alloy powder A to the total of the iron alloy powder A and the iron alloy powder B is within a range of 20 to 80 mass%, and adding 1 to 5 mass% of the iron-phosphorus powder or copper-phosphorus powder, 1 to 12 mass% of the nickel powder, 1 to 10 mass% of the copper powder or copper-nickel alloy powder, and 0.1 to 2 mass% of the graphite powder; pressing the raw material powder to obtain a compact; and sintering the compact at a temperature of from 1000 to 1200 °C. preparing iron alloy powder A consisting of, in percentage by mass, Cr: 25 to 45, Ni: 5 to 15, Si: 1.0 to 3.0, C: 0.5 to 4.0, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities; preparing iron alloy powder B consisting of, in percentage by mass, Cr: 12 to 25, Ni: 5 to 15, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities; preparing iron-phosphorus powder consisting of, in percentage by mass, P: 10 to 30 and the balance of Fe plus unavoidable impurities or copper-phosphorus powder consisting of, in percentage by mass, P: 5 to 25 and the balance of Cu plus unavoidable impurities, nickel powder, copper powder or copper-nickel alloy powder, and graphite powder; blending raw material powder, consisting of, in percentage by mass, Cr: 10.37 to 39.73, Ni: 5.10 to 24.89, Si: 0.14 to 2.52, Cu: 1.0 to 10.0, P: 0.1 to 1.5, C: 0.18 to 3.20, at least one selected from the group consisting of Mo, V, W, Nb and Ti: 5 or less, and the balance of Fe plus unavoidable impurities by mixing the iron alloy powder A with the iron alloy powder B so that a ratio of the iron alloy powder A to the total of the iron alloy powder A and the iron alloy powder B is within a range of 20 to 80 mass%, and adding 1 to 5 mass% of the iron-phosphorus powder or copper-phosphorus powder, 1 to 12 mass% of the nickel powder, 1 to 10 mass% of the copper powder or copper-nickel alloy powder, and 0.1 to 2 mass% of the graphite powder; pressing the raw material powder to obtain a compact; and sintering the compact at a temperature of from 1000 to 1200 °C.