The paper describes results of investigation on sputtered NiFe Films to determine the sputter deposition condition that could produce magnetic field sensors with the desired magnetic and magnetoresistive properties. The magnetic thin films materials used in such devices should have a low coercive force, a low anisotropy field and low magnetization dispersion, α50 with high magnetoresistance ratio. From the results presented, it is shown that that the most useful films for 82%Ni-Fe composition are produced at 200 °C-250 °C moderate substrate temperatures. It is also possible to specify the substrate bias potential and sputter gas pressure sputter deposition conditions under which the 82%Ni-Fe thin films may be employed for the production of magnetoresistine sensors with near optimum magnetic and magnetoresistive properties. The work also provide understanding of the effects on the magnetic properties of sputtered magnetic films that is very limited as current literature is almost entirely limited to evaporated magnetic films.