This paper reports the fabrication and characterization of a new type of magnetoelectric polymer nanocomposite that exhibits excellent ferromagnetism and ferroelectricity simultaneously at room temperature. The multiferroic nanocomposite consists of high aspect ratio ferromagnetic iron nanowires embedded inside a ferroelectric co-polymer poly(vinylindene fluoride-trifluoroethylene), P(VDF-TrFE). The nanocomposite has been fabricated via a simple low temperature spin coating technique. Structural, ferromagnetic, ferroelectric, and magnetoelectric properties of the developed nanocomposite have been characterized. The nanocomposite films showed isotropic magnetic properties due to the random orientation of the iron nanowires inside the film. In addition, the embedded nanowires did not hinder the ferroelectric phase development of the nanocomposite. The developed nanocomposite showed a high magnetoelectric coupling response of 156 mV/cmOe measured at 3.1 kOe DC bias field. This value is among the highest reported magnetoelectric coupling in two phase particulate polymer nanocomposites.