We propose in this paper an alternating A-$\phi$ method for the quasi-magnetostatic eddy current problem by means of finite element approximations. Bounds for continuous and discrete error in finite time are given. And it is verified that provided the time step $\tau$ is sufficiently small, the proposed algorithm yields for finite time $T$ an error of $O(h+\tau^{1/2})$ in the $L^2$-norm for the magnetic field $H(= \mu^{-1} \nabla \times A)$, where $h$ is the mesh size, $\mu$ the magnetic permeability.