  The presence of nanoscale inhomogeneities has been experimentally evidenced
in several diluted magnetic systems, which in turn often leads to interesting
physical phenomena. However, a proper theoretical understanding of the
underlying physics is lacking in most of the cases. Here we present a detailed
and comprehensive theoretical study of the effects of nanoscale inhomogeneities
on the temperature dependent spontaneous magnetization in diluted magnetic
systems, which is found to exhibit an unusual and unconventional behavior. The
effects of impurity clustering on the magnetization response have hardly been
studied until now. We show that nanosized clusters of magnetic impurities can
lead to drastic effects on the magnetization compared to that of homogeneously
diluted compounds. The anomalous nature of the magnetization curves strongly
depends on the relative concentration of the inhomogeneities as well as the
effective range of the exchange interactions. In addition we also provide a
systematic discussion of the nature of the distributions of the local
magnetization.
