Abstract A high sensitivity Magneto-Impedance (GMI) sensor for magnetic communication systems in harsh environments is presented. In this system, the receiving coil of a conventional magnetic communication system is replaced by a high sensitivity GMI sensor and its digital electronic conditioning as well as digital signal processing. The whole architecture of the sensor is described in detail. It achieves two digital amplitude demodulations to recover, in real time, the binary sequence of the message sent by the transmitter. The demonstration and the validation of the reliable functioning of the system are illustrated through the transmission of messages using On-Off-Keying modulation method. The measured equivalent magnetic noise of the sensor was about noise 2 p T / Hz at 60 kHz, which is largely lower than the noise of other potential types of magnetic sensors such as Anisotropic Magneto-Resistive sensors for this application. This noise level suggests a potential higher communication range. When compared with an inductive coil, the developed sensor also presented an almost flat and sufficiently wide bandwidth compatible with magnetic communication. This bandwidth could potentially be extended according to the application.