While high‐degree models of the Earth's gravity potential have been inferred from measurements for more than a decade, corresponding geomagnetic models are difficult to produce. The primary challenge lies in the estimation of the magnetic potential, which is not completely determined by available field intensity measurements and cannot be computed by direct integration. Described here is the methodology behind the third generation of the National Geophysical Data Center's degree 720 magnetic model. Key issues are (1) the ellipsoidal harmonic representation of the magnetic potential, (2) the reduction of ambiguities by a suitable penalty function, and (3) the use of an iterative method to estimate the model coefficients. The NGDC‐720 model provides the lithospheric magnetic field vector at any desired location and altitude close to and above the Earth's surface. Anticipated uses are in geological and tectonic studies of the lithosphere, as a local correction for magnetic navigation and heading systems, and the calibration of ground, marine, airborne, and spaceborne magnetometers. The NGDC‐720 model is available at http://geomag.org/models/ngdc720.html and for long‐term archive at http://earthref.org/cgi‐bin/er.cgi?s=erda.cgi?n=989.
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