A new circular position sensor based on giant magnetoresistances has been developed. The sensing film is an Ag<sub>x</sub>-Co<sub>1-x </sub>nanogranular thin film patterned in a circular Wheatstone bridge configuration over an alumina substrate. This alloy shows a high magnetoresistance of 8% at room temperature within the field generated by a neodymium-iron-boron permanent magnet. The sensor provides a sensitivity of 440 μV/V/(degrees) with an input voltage of 5V. The operation temperature range of this device is -40 degrees C~+120 degrees C although the magnetic film withstands higher temperatures up to 200 degrees C. The sensor assembly is able to attach an electronic interface in the rear of the alumina substrate to amplify and compensate the output signal. These parameters and the contact-less way of sensing make this device suitable for automotive applications. In addition, the sensor is insensitive to contamination, and devoid of friction and electrical contact noise therefore the sensor have a long lifetime.