Erp>3+p> doped Ge nanocrystals embedded in high-k Alb>2b>Ob>3b> matrix were prepared by pulsed laser ablation method. X-ray spectra and transmission electron micrographs have confirmed the formation of Ge nanocrystals and the increase in crystallite size with increasing annealing temperature from 750 掳C to 950 掳C. An enhanced photoluminescence intensity at 1.54 渭m is attained by optimizing the Er concentration. Temperature dependent photoluminescence from samples annealed at different temperatures has shown the existence of thermally activated energy transfer process between Erp>3+p> and Ge nanocrystals.