An integrated circuit includes a fluxgate magnetometer. The magnetic core of the fluxgate magnetometer is encapsulated with a layer of encapsulant of a nonmagnetic metal or a nonmagnetic alloy. The layer of encapsulate provides stress relaxation between the magnetic core material and the surrounding dielectric. A method for forming an integrated circuit has the magnetic core of a fluxgate magnetometer encapsulated with a layer of a nonmagnetic metal or nonmagnetic alloy to eliminate delamination and to substantially reduce cracking of the dielectric that surrounds the magnetic core.