Wire rope is a key component used by many industries such as mines, elevators, and cableways to pull, lift, transport, and carry equipment. During long-term operation, steel wire ropes may suffer from wire breakage, cross-sectional wear, rust and other damages, leading to unsafe hazards. Regular safety monitoring and evaluation of the health status of steel wire ropes is crucial. This study proposes a new method for identifying steel wire rope damage based on the spatial magnetic field balance mechanism to address the shortcomings of traditional strong magnetic detection methods. Firstly, the three-dimensional solid modeling using PRO/E was studied, and the magnetic circuit design was carried out, and secondly, the finite element analysis was used to compare the advantages and disadvantages of the X-axis and Y-axis magnetization directions, and the Y-axis magnetization direction was better than the X-axis magnetization direction according to the magnetic field line density and the change strength of the intermediate linear magnetic field. Finally, by using the three-dimensional magnetic field numerical analysis software, the appropriate sensor concentrating ring structure and sensing unit are designed and calculated. The results show that the wire rope flaw detection sensor based on electromagnetic field balance detection is better than that of the strong magnetic detection sensor.