The present study describes the preparation and characterization of a novel urea slow-release nanocomposite, based on urea intercalation into montmorillonite clay by an extrusion process at room temperature. Nanocomposites with urea contents ranging from 50 to 80 wt % were successfully produced and characterized. Analyses by XRD, DTA, and SEM-EDX confirmed the effectiveness of this simple process to exfoliate the clay lamellae into the urea matrix, forming a product that can be classified as a nanocomposite, due to the exfoliation degree attained. Diametral compression tests showed that the samples were very deformable, and the release rate of active components in water showed that the nanocomposite showed a slow release behavior for urea dissolution, even in low montmorillonite amounts (20% in weight).