The widely-used magnesium alloy AZ91D is light-weight and energy-saving with good castability and mechanical performance. The traditional machining way for magnesium and its alloys is the high-speed mechanical contact cutting, which usually leads to uncontrollable intense ignition with some notable heat-induced machining defects. However, it has been rarely reported that the non-contact precision laser machining is used for cutting the magnesium and its alloys. The problems such as the local heat effect, the heat-induced defects and the local ignition as well as the vapor-plasma plume usually encountered during laser machining of magnesium and its alloys. Hence, in this study, a hybrid laser cutting way of femtosecond laser layered ring hole-cutting using the assist gas and E-field is reported to machine micro holes in the AZ91D material. The effect of the lateral E-field and assist gas on the hole formation characteristics was demonstrated for femtosecond laser cutting of the AZ91D sheets. It was indicated that the use of the lateral E-field and assist gas suppressed the ignition as well as the vapor-plasma plume. The hole depth was increased by the external assistance used especially the lateral nitrogen blowing. The hole wall formation quality was improved by using the lateral E-field and compressed air blowing, while it got poorer if using the lateral nitrogen blowing. The ignition-induced carbonization was effectively suppressed by the assist gas used. The hole depth, microstructure and micro hardness were improved by using the lateral E-field and assist gas.