This paper presents a new passive magnetic bearing system that is capable to rotate without contact at a short distance from a dedicated stator. The magnetic suspension is assured by the repulsion between two arrangements of permanent magnets located both on toroidal shaped stator and rotor. The stator magnets are surrounded by a conductive sheet. The presence of eddy currents due to the relative motion between the rotor magnets and the conductive sheet allows overcoming the intrinsic instability of the system. The dependence of the stabilizing force on the angular velocity will be determined as well as the levitation force, the magnetic drag force and the power dissipated in the conductor sheet by the stabilizing eddy currents.