Recently, doped rare-earth manganates exhibiting colossal magnetoresistivity have been proposed to be used as the semiconductor channel material for a Ferrolectric Field Effect Transistor. Although the feasibility of epitaxial magnetoresistive/ferroelectric heterostructures have been demonstrated, the leakage in the ferrolectric layer and the strain induced degradation of the magnetoresitive layer remain a principal problem. We present results on fabrication and characterization of epitaxial giant magnetoresistive/ferrolectric La0.7Ca0.3MnO3(LCMO)/PbZr0.52TiO.48O3(PZT) heterostructures. The films have been prepared in situ by a KrF pulsed laser deposition technique on single crystal LaAlO3 substrates from stoichiometric LCMO and PZT targets. The main processing parameters have been optimized to preserve the existence of giant magnetoresitivity in the LCMO films after deposition of the top ferrolectric layer. A high degree of c-axis orientation and a strong in-plane texture coherent with the substrate both in template LCMO and PZT layers, high dielectric permittivity of 1800, remanent polarization of 0.2 C/m2 and a magnetoresistivity of 28% at H=0.5 T indicate excellent characteristics of coexisting magnetoresistive and ferroelectric properties.