This paper reports a novel hybrid method of tracking the position and orientation of robotic medical instruments within the imaging volume of a magnetic resonance imaging (MRI) system. The method utilizes two complementary measurement techniques: passive MRI fiducial markers and MRI-compatible joint encoding. This paper reports an experimental evaluation of the tracking accuracy of this system. The accuracy of this system compares favorably to that of a previously reported active tracking system. Moreover, the hybrid system is quickly and easily deployed on different MRI scanner systems. © 2006 IEEE.