Permalloy films have been deposited on glass slide substrates by using a Two Facing\´Targets type of sputtering method which can deposit magnetic films at a high rate (>1500 Å/min) and low substrate temperature (<100 °C). Magnetic properties, internal film stress and morphology of the films depend significantly on substrate RF bias voltage Vb and substrate temperature Ts. The films deposited at Vb in the range from -120 V to -160 V or at Ts above 350 °C show good soft magnetic properties (μi≅2000 and

Oe). In bias sputtering, the internal stress of the films changes from a tensile stress to a compressive one with an increase of Vb and stress free films can be obtained by applying an optimum bias voltage ≅ -120 V) to the substrate. The improvement of the soft magnetic properties of the films by applying the substrate bias is mainly attributable to both the reduction of the internal stress and the improvement of the homogeneity of the films.