A new nanocomposite of Ge/carbon nanotubes (n-Ge/CNTs) was reported by a facile precursor method through a pyrolysis technique. Among it, germanium nanoparticles are encapsulated with a thin layer of amorphous carbon, which benefits to keep a good electronic contact with carbon nanotubes. Germanium nanoparticles are mainly supported inside the carbon nanotubes, which can effectively buffer the volume changes of Germanium. The composite was an effectively mixed (Li+ and e−) conducting network, which is vital to a quick Li insertion. The composite was shown to exhibit a reversible capacity of about 750mAhg−1 (74.4mAg−1) and an improved rate performance, compared with that of CNTs processed as the same condition. Our results demonstrated the composite to be a good active Li-storage material for Li batteries.