A gap and displacement magnetic sensor system for scanner heads in paper machines or other systems includes a multiple-sensor assembly. The multiple-sensor assembly includes multiple magnetic field orientation sensors configured to capture measurements of a magnetic field in order to identify (i) a displacement of first and second scanning sensor heads in a first direction, and (ii) a gap separation of the first and second scanning sensor heads in a second direction, and (iii) a displacement of the first and second scanning sensor heads in a third direction. At least one of the magnetic field orientation sensors is disposed offset from a centerline of the magnetic field such that an output from the at least one magnetic field orientation sensor indicates a combination of the gap separation and the displacement in either the first direction or the third direction.