A novel high sensitivity all-fiber micro-displacement sensor is proposed and experimentally demonstrated. This sensor consists of a long period fiber gating and a fiber tip, which is achieved only by a commercial arc discharge fusion splicer, and thus possesses a lower cost. The wavelength sensitivity of the proposed sensor could be up to 934 pm/μm, which is four times higher than that of the long period fiber grating (LPFG) with an air cavity structure. The intensity change sensitivity is -1.973 dB/μm.