In this paper, a low cost magnetic position sensor for linear position detection is proposed. The proposed magnetic sensor can be applied to the linear motor which has stator with periodical teeth, such as transverse flux linear motor(TFLM). Sine and cosine waves can be generated from the unit sensor module as the linear motor moves, and the outputs can be converted to the position data by interpolation IC. To reduce the speed ripple caused by the position error, the Luenberg observer is introduced. The validity of the proposed magnetic position sensor is verified by experiment with a 750N three-phase TFLM.