A method is provided for producing magnetic green compacts. Material powder including a rare earth alloy and containing not less than 15 mass % of fine particles with particle diameter of not more than 2 μm is filled into a compacting mold, then compacted and compressed, and subjected to magnetic fields to give a green compact. A powder compact having a packing density 1.05 to 1.2 times the bulk density is subjected to a weak magnetic field of 1 to 2 T to give a compact. The magnetic field strength is increased to not less than 3 T at an excitation rate of 0.01 to 0.15 T/sec, and the strong magnetic field of not less than 3 T is applied to the compact by a high-temperature superconducting coil. The magnetic field is applied by the high-temperature superconducting coil in a direction opposite to a direction applied by a normal conducting coil.