Structural, magnetic and magnetoresistance behavior of NiFe/Ag multilayers prepared by a magnetron sputter under an Ar and $Ar/H_2$ atmosphere was studied. It was difficult to make a uniform multilayer by using an Ar atmosphere. However, the uniform multilayers could be fabricated by using an $Ar/H_2$ atmosphere. This was thought to be due to decrease in the energy of the sputtered atom and Ar content of the film. Typical magnetoresistance behavior of the discontinuous NiFe/Ag multilayers appeared when the uniform multilayer was formed and annealed. Substrate temperature did not improve the uniformity of the multilayers. Above 20$0^{circ}C$ of the substrate temperature, the films were almost formed into granular alloys rather than multilayers.