The Ag-SnO2 contact material is widely regarded as the most promising environmental friendly electrical contact material. However, during the make and break operations, SnO2 particles rising to the surface can cause increased contact resistance and temperature rise, which affects the service life of the contact material. In this study, a three-dimensional (3D) Ni skeleton reinforced Ag-based contact material with CuO-coated SnO2 are successfully fabricated via powder metallurgy technology. The basic physical properties of the novel contact material were tested and the microstructures and arc erosion morphologies were analyzed using X-ray diffraction (XRD) and scanning electron microscopy (SEM). The research demonstrated that the hardness and electrical conductivity of the novel contact material are 128.9 HV and 46 %IACS, respectively. It can be observed that the SnO2-rich phase is uniformly distributed in the Ag matrix without significant upward after arc erosion, which indicates that the SnO2@CuO core-shell structure effectively enhances the wettability between Ag and SnO2. Meanwhile, the study revealed that the Ni phase uniformly distributed at the interface of the Ag phase during the arc erosion process, indicating that the 3D Ni skeleton structure effectively impedes the expansion of the Ag molten pool and improves the anti-arc erosion performance.