Magnetic manipulation is a promising technique for lab-on-a-chip platforms. The magnetic approach can avoid problems associated with heat, surface charge, ionic concentration and pH level. The present paper investigates the migration of diamagnetic particles in a ferrofluid core stream that is sandwiched between two diamagnetic streams in a uniform magnetic field. The three-layer flow is expanded in a circular chamber for characterisation based on imaging of magnetic nanoparticles and fluorescent microparticles. A custom-made electromagnet generates a uniform magnetic field across the chamber. In a relatively weak uniform magnetic field, the diamagnetic particles in the ferrofluid move and spread across the chamber. Due to the magnetization gradient formed by the ferrofluid, diamagnetic particles undergo negative magnetophoresis and move towards the diamagnetic streams. The effects of magnetic field strength and the concentration of diamagnetic particles are studied in detail.