We report the fabrication of a directly coupled superconducting quantum interference device (SQUID) magnetometer in MgB2 using a focused ion beam (FIB) to create Josephson junctions in a 70 nm thick film of MgB2. The SQUID shows a voltage modulation (deltaV) of 175 mV at a temperature of 10 K and operates over a temperature range from 10 K to 24 K. We find excellent agreement between the measured maximum transfer functions and those predicted by theory. We have measured the magnetic flux noise at 20 K to be as low as 14 micro Phi-0 per root Hz.