Intensity-modulated radiation therapy (IMRT) requires precise delivery of the prescribed dose of radiation to the target and surrounding tissue. Irradiation of moving body anatomy is possible only if stable, accurate, and reliable information about the moving body structures are provided in real time. This paper presents a magnetic position tracking system for radiation therapy. The proposed system uses only four transmitting coils and an implantable transponder. The four transmitting coils generate a magnetic field which is sensed and measured by a biaxial magnetoresistive sensor in the transponder in the tumor. The transponder transmits the information back to a computer to determine the position of the transponder allowing it to track the tumor in real time. The transmission of the information from the transponder to the computer can be wired or wireless. Measurements using a biaxial sensor agree well with the field strength calculated from the ideal equations. The translation from the measurement data to the 3-D location and orientation requires a numerical technique because the equations are in nonclosed forms. The algorithm of tracking is implemented using MATLAB. Each calculation of the position along the target trajectory takes 30 ms, which makes the proposed system suitable for real-time tracking of the transponder for radiation assessment and delivery. An error of less than 2 mm is achieved in the demonstration.