The bacteriocidal properties of silver nanoparticles (AgNPs) depend on their average diameter (toxicity increases with decreasing diameter). In the present work, we describe novel green chemistry biosynthesis of AgNPs from AgNO3 added to cell-free culture medium of baker’s yeast, Saccharomyces cerevisiae, yielding nanoparticles in the range 11–25 nm. However, when yeast was grown in a moderate static magnetic field, AgNPs obtained from the resulting cell-free culture medium, were significantly smaller (2–12 nm) than those obtained without magnetic field. These latter nanoparticles were highly crystalline, stable and near-uniform shape. Furthermore, the antibacterial activity of AgNPs obtained from static magnetic fields were greater than those from control cultures. Static magnetic fields show a promising ability to generate biocidal nanoparticles via this novel green chemistry approach.