We present a novel high-accuracy rotary magnetic sensor system composed of a two-track coded multi-pole magnet and a dual-spot multi-axes magnetic sensor. The novelty is the measurement of two orthogonal magnetic field components in each of the two sensing spots of the sensor, one associated with each magnet track. As the two orthogonal signals in each spot are naturally in quadrature, i.e. they represent a sine and a cosine signal, the measurement principle is virtually independent of the magnet pole size and pitch. We can therefore design a magnet with much larger poles which in turn generate stronger magnetic flux, allowing for an increased air gap between sensor and magnet. The calibrated encoder system was characterized to deliver 13 bits of absolute accuracy and 17 bits of resolution over the full 360° range.