Abstract A new sputtering source has been proposed, especially aiming at fabrication of a Co-Cr composite medium for perpendicular magnetic recording. The source consists of facing side walls and a bottom plate of target magnetic material. The wall targets work as a part of a magnetic circuit for getting a sufficiently strong magnetic field. Targets of permalloy and Co-Cr were constructed for a test. A well confined plasma makes discharge characteristics at low discharge voltages very stable even at low argon gas pressures. Good film thickness honogeneity was obtained due to the collimated atoms sputtered from the gun structure type target. The recovery factor of sputtered materials to the substrate was 10 times or more than that of conventional sources. The deposited permalloy films show low coercivities with high crystal orientations even at a high input power. These results imply that the new sputtering source is a promising means for fabricating Co-Cr composite media with a high throughput.