We have investigated transport properties of iron (Fe) nanoparticles embedded in zinc selenide (ZnSe) semiconducting epilayers prepared by molecular beam epitaxy. Both positive and negative tunneling magnetoresistances (TMRs) were measured depending on the applied voltage biases and on the temperature. A slow reduction of the TMR magnitude with temperature was detected and it could be explained in terms of a crossover between direct/resonant tunneling and variable range hopping. The temperature behavior of the magnetoresistance is a clear signature of tunneling and hopping mechanisms mediated by the ZnSe barrier localized states. (C) 2008 American Institute of Physics.10312