On a multilayer film formed on a lower electrode layer, a resist layer having cutaway parts at a lower portion is formed, and on parts of the upper surface of the multilayer film which are not overlapped with the resist layer except for areas inside the cutaway parts, first gap layers are formed. Accordingly, a predetermined gap T1 can be formed between the first gap layers in the track width direction. Next, in the following step, two end surfaces of the multilayer film and the first gap layers in the track width direction are milled. Hence, according to the present invention, compared to the case in the past, the predetermined gap T1 provided between the first gap layers can be formed into a minute size with superior accuracy, the current path-squeezing structure can be easily formed, and a magnetic sensor having superior change in resistance (ΔR) and reproduction output can be manufactured.