Abstract: Liposomes comprising an iron (II) source selected from the group consisting of ferrous sulfate, ferrous lactate and ferrous citrate. The iron source is stabilized in aqueous solutions of reducing agents, such as, ascorbic acid and soluble ascorbates, which inhibit oxidation of iron (II) to iron (III) and is microencapsulated. A process by which the liposomes containing the iron (II) source are formed is also provided whereby the iron source is encapsulated into an ingestible form.The liposomes make it possible to increase the level of bioavailable iron in ingestible substrates.