Inductive sensors are widely used in the industry. They provide reliable output even when exposed to a harsh environment. A new configuration of mutually coupled planar coils that enable non-intrusive sensing of the position of an object will be presented in this talk. The proposed configuration is used to design a sensor system to measure the liquid level in a sealed container. The range of the sensor is easily extendable. A suitable readout scheme is developed to measure the mutual inductances and to compute the final output that is proportional to the liquid level. The input-output characteristic of the prototype unit developed to evaluate the practicality of the approach is linear, with a worst-case percentage nonlinearity less than 1%. The effect of various non-idealities and environmental factors has been evaluated and found to be negligible for the required range. The details of the new configuration, measurement scheme, prototype development, evaluation, limitations, and future work will be presented in the talk.