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I have a macro enabled Excel spreadsheet (.xlsm) that I want to use as a template for a form library. I want to know whether it is possible to do so?

If not, is there any other way I can make all the documents that are created on clicking the 'New Form' link in this library as this .xlsm file?

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Yes you can use macro enabled documents as Template.

Associate a document template with a content type

  1. From the home page of the top-level site in the site collection, on the Site actions menu, point to Site Settings, and then click Modify All Site Settings.
  2. In the Galleries section, click Site content types.
  3. On the Site Content Type Gallery page, click the site content type to which you want to associate a document template.
  4. On the Site Content Type page, in the Settings section, click Advanced settings.
  5. In the Document Template section, click Enter the URL of an existing document template to associate an existing document template with the content type or click Upload a new document template to upload a new document template and associate that template with the content type.
  6. Click OK.

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