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Biocompatible ferrofluids based on dextran coated iron oxide nanoparticles were fabricated by conventional co-precipitation method. The experimental results show that the presence of dextran in reaction medium not only causes to the appearance of superparamagnetic behavior but also results in significant suppression in saturation magnetization of dextran coated samples. These results can be attributed to size reduction originated from the role of dextran as a surfactant. Moreover, weight ratio of dextran to magnetic nanoparticles has a remarkable influence on size and magnetic properties of nanoparticles, so that the sample prepared with a higher weight ratio of dextran to nanoparticles has the smaller size and saturation magnetization compare with the other samples. In addition, the ferrofluids containing such nanoparticles have an excellent stability at physiological pH for several months. Furthermore, the biocompatibility studies reveal that surface modification of nanoparticles by dextran dramatically decreases the cytotoxicity of bare nanoparticles and consequently improves their potential application for diagnostic and therapeutic purposes.

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