A magnetoresistance effect film includes a substrate, a plurality of ferromagnetic particles disposed on the substrate, a nonmagnetic film deposited on the substrate and covering the plurality of ferromagnetic particles, and a pair of electrodes arranged on the nonmagnetic film, in which the resistance across the pair of electrodes is changed by applying a magnetic field. The magnetoresistance effect film is manufactured by vapor-depositing ferromagnetic particle starting material on a substrate at a temperature not exceeding 300null C., the starting material being vapor-deposited in an amount enough to cover the substrate surface to a thickness ranging from 0.5 to 15 nm, and, after formation of ferromagnetic particles on the substrate, vapor-depositing at a temperature not exceeding room temperature a nonmagnetic film over the ferromagnetic particles, the nonmagnetic film having a thickness ranging from 1 to 100 nm, and providing a pair of electrodes each at a predetermined position on the nonmagnetic film.