The cost and performance of neuromagnetometers can be improved using a new type of magnetic sensor array. The improved array will consist of several planar segments, each of which is a highly integrated structure containing a number of SQUID magnetic sensors. Each SQUID pickup loop will incorporate a novel background-compensation structure, which will allow the sensor array to operate in the hospital environment with a minimum of magnetic shielding. The unique sensor design will maximize the sensitivity and spatial resolution of the neuromagnetometer, while the integrated array construction will minimize the cost of assembling the instrument.