A novel Mach-Zehnder interferometer based on a fiber multimode interference structure combined with a long-period fiber grating (LPG) is proposed. The multimode interference is achieved through the use of a MMF section spliced between two single-mode fibers, with a length adjusted to couple a fraction of light into the cladding modes. A LPG placed after the MMF couples light back into the fiber core, completing the Mach-Zehnder interferometer. This novel configuration was demonstrated as a bending sensor.