The state detection of power cables is very important to ensure the reliability of the power supply. Traditional sensors are mostly based on electric field detection. The operation is complex, and its efficiency needs to be improved. This paper optimizes the design and development of the magnetic field detection sensor for AC power cables. First, through the establishment of the magnetic field sensor model, it is determined that permalloy is the material of the magnetic core, the optimal aspect ratio of the magnetic core is 20, and the ratio of coil length to core length is 0.3. Second, the coil-simulation model is established, and it is determined that the optimal number of turns of the coil is 11,000 turns, the diameter of the enameled copper wire is 0.08 mm, and the equivalent magnetic field noise of the sensor is 0.06 pT. Finally, the amplifying circuit based on negative magnetic flux feedback is designed, the sensor is assembled, and the experimental circuit is built for the sensitivity test. The results show that the sensitivity of the magnetic field sensor is 327.6 mV/μT. The sensor designed in this paper has the advantages of small size, high sensitivity, ease of carry, and high reliability.