The paper presents an inductive proximity sensor with fully integrated electronics. The sensor with the compact hybrid configuration is composed of a sensing flat coil and an integrated electronic interface. The sensor exhibits a longitudinal resolution of 120 nm for an aluminum target position up to 500 µm from the sensing coil. The total working range is from 100 µm to 1200 µm. The temperature drift of the sensor is less than 400 ppm/°C. The sensor power consumption is 125 mW and the active sensor dimensions are 1.5mm x 1.5mm x 1.2mm.