A modified steady-state free-precession (SSFP) method for functional magnetic resonance imaging (fMRI) is disclosed for acquiring a complex-valued image of object. A modulating field gradient is applied to impart spatial modulation of the steady-state signal phase and magnitude across the complex-valued image of the object along the direction of the modulating field gradient. SSFP pulse sequence parameters and modulating field gradient parameters can be selected to optimize functional image contrast between, e.g., oxy- and deoxy-hemoglobin, derived from steady-state signal magnitude or phase of complex-valued images.