Abstract: A novel magnetoelectric (ME) composite which is suitable for magnetic sensor was fabricated, its structure is different from conventional ME composites. The strip PZT (Pb(ZrTi)O₃) and Terfenol-D were laminated bonded with the thermoset epoxy. Terfenol-D layer was magnetized in its longitudinal direction and piezoelectric PZT strips were polled in their transverse direction. Every PZT strip was electrical series connected together, different from conventional 1-3 type ME composite. It gets much larger voltage output which is 2.2 times of conventional ME composite in the same magnetic field. The novel ME composite has higher magnetic field sensitivity and enhances the anti-noise characteristic. It’s a new way of using ME composite for small magnetic field sensor.