Nickel silicide was formed on strained-Si0.83Ge0.17/Si(001) using a sacrificial Si capping (cap-Si) layer and its morphological characteristics were investigated. Nickel silicide layers were grown by rapid thermal annealing of the samples with the structure of Ni (\\cong14 nm)/cap-Si (\\cong26 nm)/Si0.83Ge0.17/Si(001) at the annealing temperature (TA) range of 400–800°C. The phase formation, surface and interfacial morphologies, and electrical properties of the resulting samples were characterized by various measurement techniques, including X-ray diffraction, atomic force microscopy, scanning electron microscopy, Auger electron spectroscopy, cross-sectional transmission electron microscopy, and the four-point probe method. The results showed the formation of a uniform layer nickel monosilicide (NiSi) with a thickness of \\cong30 nm at 400–550°C and sheet resistance values of 6.5–7.9 Ω/□. The sheet resistance values of the samples annealed at TA≥600°C were found to be increased, however, and this is attributed to the agglomeration of nickel monosilicide leading to discrete large-size NiSi grains. Microstructural and chemical analyses of the samples annealed at elevated temperature, TA≥750°C, indicated the formation of large agglomerated NiSi grains penetrating into the Si0.83Ge0.17/Si(001) structure and the conversion of the cap-Si layer situated in between the nickel silicide grains into an Sil-uGeu layer (u \\cong0.01–0.03), due to the out-diffusion of Ge from the SiGe layer during agglomeration. However, no NiSi2 phase was observed at these elevated annealing temperatures.