The short answer is "sort of". Word can open Excel files, whose
contents are then converted to Word tables, but if you save it in
Word, it can no longer be opened in Excel, despite the fact that
it still has an "xls" extension.
I think you need to provide a few more details about what you
want to do, and why you want to do it.
I want to provide a set of instructions in Word, about how to enter data and
what various labels mean etc. I find that as separate documents one keeps
getting lost so I'm looking for a way to stop that happening.