The invention relates to a process for preparing aluminum and titanium master alloy, in particular to a method for preparing the aluminum and titanium master alloy from titanium chips and aluminum at a low temperature. The titanium chips and aluminum generated in a mechanical processing process of a titanium product are alloyed at the low temperature to form the aluminum and titanium master alloy. The method comprises the following steps of: after the melted aluminum and titanium chips are alloyed, rotationally degassing with argon or nitrogen, and when nitrogen content is 0.2 to 0.3ml/100gAl, filtering with a 10 to 20ppi alumina ceramic filter plate; removing impurities from an alloy liquid; and casting the alloy liquid into spindle shaped objects. The waste titanium chips can be reused and the aluminum and titanium master alloy can be produced at a relatively low alloying temperature by the method, so that serious burning loss, oxidation and inspiration of the alloy are avoided and the quality of the aluminum and titanium master alloy is improved.