This paper proposes a rotary magnetic position sensor which has a sinusoidally magnetized permanent magnet with a small number of poles. To make the sinusoidal magnetic flux density distribution from the permanent magnet, a magnetizing future is optimized by the DOE(Design of Experiments) method. The magnetization process is analyzed using the Preisach model and 2 dimensional finite element method. The magnetic flux density distribution from the magnetized permanent magnet is very similar to ideal sine wave. The simulation result of the magnetic flux density distribution is compared with the experimental one. Also the availability of the proposed rotary type magnetic position sensor is confirmed by position calculation technique.