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We consider the extended two-band s–f model with additional terms, describing intersite Cooper pairs' interaction between 4f (5f) and conduction electrons. Following Green's function technique and equation of motion method, self-consistent equations for superconducting order parameter (Δ) and magnetic order parameter (mf) are derived. The expressions for specific heat, density of states, and free energy are also derived. The theory has been applied to explain the coexistence of superconductivity and ferromagnetism in hybrid rutheno-cuprate superconductors RuSr2RECu2O8 (RE=Gd, Eu). The theory shows that it is possible to become superconducting if the system is already ferromagnetic. A study of specific heat, density of states and free energy is also presented. The agreement between theory and experimental observations is quite satisfactory.