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<i>Sporosarcina pasteurii</i> (<i>S. pasteurii</i>) is bacterium notable for its highly efficient urea degradation ability. Due to its high urease activity, <i>S. pasteurii</i> has been successfully utilized in applications including solidifying soil or sand, termed “bio-concrete”. In addition to calcium carbonate precipitation, urease isolated from the jack bean plant was recently demonstrated to induce the formation of magnetic iron oxide particles from soluble ferrous ion in a designed reaction. However, it remained unknown if a similar magnetic material could be formed using whole cells with high urease activity under biocompatible conditions. Here, we demonstrated that magnetic iron oxide with a highly ordered structure could be formed on the surface of <i>S. pasteurii</i> cells with a theoretical product of 1.17 mg in a 2-mL reaction. Moreover, the cells surrounded by the precipitated magnetic iron oxide maintained their viability. Due to the simple cultivation of <i>S. pasteurii</i>, the process developed in this study could be useful for the green synthesis of magnetic iron oxide, basic research on the mechanism of magnetic microbial-induced precipitation (MIP), and related engineering applications.