This paper investigated the separation of magnetic signal from a ferro-magnetic object. The magnetic signals were ILM(induced longitudinal magnetization) and IVM(induced vertical magnetization), which were induced by earth magnetic field and PLM(permanent longitudinal magnetization) and PVM(permanent vertical magnetization), which were due to a permanent magnetization of the object, respectively. Magnetic signal separation was based on the fact that magnetization vector could be analyzed according to longitudinal and vertical directions. Also the influence of non-uniform magnetic field from a rectangular coil on the separation was examined. A military vessel with a size close to rectangular coil has more errors on the magnetic signal separation.