Directional magnetoelectric (ME) effect was found in multi-electrode PZT/Ni cylindrical layered ME composite with external magnetic field applied perpendicular to the cylinder axis. The composite with the radially polarized PZT ring was electroplated with four Ni arc layers. Both the ME voltage coefficient and the corresponding phase suggest that the ME effect is omni-directional around the fundamental extensional mode of the PZT ring and directional around the third extensional mode with different magnetic field orientation. ME sensor with this compact structure can be used to determine the magnetic field orientation by measuring the ME voltage amplitude and the corresponding phase.