Nano granular metallic iron (Fe) and titanium dioxide (TiO$_{2-delta}$) were co-deposited on (100) lanthanum aluminate (LaAlO$_3$) substrates in a low oxygen chamber pressure using a pulsed laser ablation deposition (PLD) technique. The co-deposition of Fe and TiO$_2$ resulted in $approx$ 10 nm metallic Fe spherical grains suspended within a TiO$_{2-delta}$ matrix. The films show ferromagnetic behavior with a saturation magnetization of 3100 Gauss at room temperature. Our estimate of the saturation magnetization based on the size and distribution of the Fe spheres agreed well with the measured value. The film composite structure was characterized as p-type magnetic semiconductor at 300 K with a carrier density of the order of $ 10^{22} /{rm cm^3}$. The hole carriers were excited at the interface between the nano granular Fe and TiO$_{2-delta}$ matrix similar to holes excited in the metal/n-type semiconductor interface commonly observed in Metal-Oxide-Semiconductor (MOS) devices. From the large anomalous Hall effect directly observed in these films it follows that the holes at the interface were strongly spin polarized. Structure and magneto transport properties suggested that these PLD films have potential nano spintronics applications.