The invention relates to a high-conductivity heat-resistance aluminum alloy wire and a preparation method thereof. The high-conductivity heat-resistance aluminum alloy wire comprises the chemical elements by weight percent: 0.03-0.06% of zirconium, 0.07-0.10% of silicon, 0.14-0.25% of iron, 0.03-0.06% of ytterbium, 0.01-0.04% of boron, not more than 0.02% of total amount of titanium, manganese, chromium and vanadium, and the balance of aluminum. The preparation method comprises the following steps: respectively weighing raw materials including aluminum ingots, aluminum-silicon alloy, aluminum-iron alloy, aluminum-ytterbium alloy and aluminum-boron alloy at a mass ratio of (6000-7000): (50-95): (15-55): (18-20): (40-85): (35-90); melting each raw material, performing purification regulating elements of an aluminum solution, slagging off, preserving the heat, standing, filtering the aluminum solution, casting and crystallizing; rolling ingot-casting-formed aluminum alloy ingots to form aluminum alloy wires, drawing the rolled aluminum alloy wires to form high-conductivity heat-resistance aluminum alloy wires. According to the prepared high-conductivity heat-resistance aluminum alloy wire, the electric conductivity is larger than 61% IACS, the tensile strength is larger than 160MPa, and the heat resistance is good; furthermore, the production technical steps are simple; by utilizing electric wires and cables produced by the aluminum alloy wires, the operation speed of a circuit can be improved, and the carrying capacity is improved.