The GMR magnetometer, which has the dynamic range greater than 120 dB and the magnetic-flux-density noise less than 1 nT/Hz1/2, is suitable for the applications in low field sensing, e.g. eddy-current detection and magnetic source imaging. However, the output dc drift caused by the hysteresis of magnetic material limits its capability in sensing the low frequency magnetic fields, e.g. the electric compass. In this work, we develop the ac-driven GMR magnetometer featured with an ac modulation field and dc feedback. In this way, the dc drift is reduced and the field-to-voltage transfer function is increased substantially, facilitating the application in electric compass. Currently, the ac-driven circuits are implemented with the PCB technology. In the near future, we will design and carry out the CMOS chip through the assistance of the National Chip Implementation Center to study their characteristics for practical applications.