We have developed a new type of microwave ion source which has an axial magnetic field generated by a permanent magnet. By the combination of the permanent magnet and ferromagnetic materials, a closed magnetic circuit is formed through an ion extraction electrode. This axial magnetic field is utilized both for the high‐density plasma production by the electron‐ cyclotron resonance process and for the high efficient ion extraction by transporting the generated ions along the magnetic force lines. The continuous ion beams of 2–3 mA are delivered from the extraction aperture (2 mm in diameter) when various gases (Ar, N2, CO2), metal vapors (Cs, Rb), and reactive gas (O2) are used. Extremely low impurities are present in the extracted ion beam. An ion beam with low emittance of 10−8m rad order and high brightness of 1011A m−2 rad−2order is obtained. The size of this ion source is 50 mm in diameter and 65 mm in height. The discharge power of the microwave with the frequency of 2.45 GHz is 7 to 30 W. Thus, a high‐current microwave ion source with compact structure and low power consumption is realized.