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Yes it is. Colleague means: A fellow member of a profession, staff, academic faculty or other organization; an associate. So substituting the definition for the work colleague in fellow colleague gives you: fellow fellow member of a profession, staff, academic faculty or other organization; an associate.
To me, the difference depends on how well you know that person you're working with. A colleague is somebody that you know well enough that you'd spend time with them outside of work, somebody that shares the same interests, thoughts as you. A co-worker is somebody you happen to work with, but not in a close relationship sort of way. For example, a colleague you'd invite over for a gathering or a party of sorts, a co-worker is somebody you interact with mainly at work, and no other place really, unless you happen to cross paths outside of work.