A position sensor comprises a magneto-resistive element. The magneto-resistive element comprises a stack of layers including at least a conductive layer in between two magnetic layers. The layers have a longitudinal extension along a longitudinal axis and a lateral extension along a transverse axis. A magnet is provided comprising a magnetic dipole with a dipole axis orthogonal to a plane defined by the longitudinal axis and the transverse axis. The electrical resistance of the conductive layer depends on a position of the magnet along the longitudinal axis. The position sensor provides for nano-scale sensing.