We have worked on the structural and magnetic properties of Zn0.99-xMn0.01GdxO delta(for x = 0.02, 0.03, and 0.04) compounds prepared by using a sol-gel method. The x-ray diffraction, scanning electron microscopy, and energy dispersive x-ray spectroscopy were used to understand the structural properties of the samples. We observed that cosubstitution of Mn (1 %) and Gd (2-4 %) into the ZnO does not change the hexagonal structure. Scanning electron microscope (SEM) images show us that the grain size decreases with the increasing amount of the Gd into the ZnO matrix. The magnetic properties of the samples have been investigated by using magnetic hysteresis and DC susceptibility measurements. The ZMG1 sample shows a weak ferromagnetic behavior at room temperature, whereas the ZMG2 and ZMG3 samples exhibit a paramagnetic nature. Furthermore, it is also found that the magnetizations of the samples decrease with increasing Gd content in the ZnMnO system due to the enhancing interaction between Gd3+ ions. We summarize that the co-substitution of Mn and Gd into the ZnO generates a room-temperature ferromagnetism, but it still needs more work to obtain strong and high coercivity magnetic loops for applications.