Free precession in the earth\´s magnetic field by optically polarized He
3nuclei has been observed for the first time. A He
3nuclear magnetometer utilizing this effect was fabricated and evaluated. A unique characteristic of the He
3nuclei is very long transverse relaxation times which are found to range from 10
3to 10
5seconds. The He
3sensor has a signal-to-noise ratio comparable to conventional proton magnetometers, but is expected to have improved accuracy and a lower operating power requirement. A technique is described for overcoming the effects of radiation damping in order to utilize these very long relaxation times in the magnetometer. The He
3magnetometer is demonstrated to have a sensitivity of

G by comparison with a locked-oscillator He
4magnetometer.