We had synthesized a new compound YbFe2As2 using heating technique followed by the furnace cooling process. YbFe2As2 had been synthesized in polycrystalline form. The presence of adsorbed oxygen was confirmed on the surfaces of grown YbFe2As2 by EDAX analysis. Hence the sample had been named as YbFe2As2:O2. This new compound YbFe2As2:O2 had shown paramagnetic behaviour when magnetization (M) versus temperature (T) was measured using superconducting quantum interference device (SQUID) at constant magnetic field (H = 795.77 × 103 A m-1). A sharp slope change around 140 K was noticed during magnetization (M) versus temperature (T) at H = (795.77 × 101 A m-1) which is the SDW transition temperature for the well-studied parent compound BaFe2As2. Result of M versus H measurements for YbFe2As2:O2 at 2 and 200 K had revealed that the saturation point could not been achieved at H = (557.04 × 104 A m-1). The detailed magnetic studies on YbFe2As2:O2 exhibited that the co-existence of both strong antiferromagnetic as well as a weak ferromagnetic behaviour. Temperature versus resistivity measurement showed metallic behaviour along with a transition at around 13 K. Influence of antiferromagnetic spin fluctuation in the normal state transport property of YbFe2As2:O2 had been found. © 2017 IOP Publishing Ltd.