Magnetostrictive strain sensors with high spinorbit coupling have been integrated with Fiber-Bragg-Grating sensors wherein the gap within the gratings varies with strain within the encapsulating magnetostrictive material. Terfenol-D has been chosen as the mm sized magnetostrictive material which exhibits the largest known bulk magnetostriction. The setup utilised consists of an optical to electrical transducer leading to lower noise in the system while carrying out sensing in the magneto-optic domain. Non-linear isotropic analytical modeling and linear anisotropic finite element modeling is carried out to gain further insight into the variation of material parameters with external magnetic field intensity. The operated magnetic fields lie within 100 µT with a sensor sensitivity of 0.6 kHz/ppm, thus reducing risks due to any prolonged or repeated exposure. This technology can be integrated with state-of-the-art sensors with high sensitivity to create smaller and safer tracking systems, particularly in-vivo.