A magnetic bearing system using forces of repulsion between permanent magnets is developed. In the developed system, the radial motions of the rotor are passively supported by repulsive force. The suspension system of such configuration is inherently unstable in the axial direction so that it is stabilized by using motion control of the permanent magnets for passive radial suspension; these magnets are driven by voice coil motors according the motion of the rotor in the axial direction. The characteristics of the system are studied both theoretically and experimentally. The experimental results demonstrated that the developed magnetic bearing can suspend a rotating mass without any mechanical contact, and realize positioning control of the rotor in the axial direction.