TPU-coated polyester fabric was used as the substrate of a flexible temperature sensor and Ag nanoparticles were deposited on its surface as the temperature sensing layer by the magnetron sputtering method. The effects of sputtering powers and heat treatment on properties of the sensing layers, such as the temperature coefficient of resistance (TCR), linearity, hysteresis, drift, reliability, and bending resistance, were mainly studied. The results showed that the TCR (0.00234 °C−1) was the highest when sputtering power was 90 W and sputtering pressure was 0.8 Pa. The crystallinity of Ag particles would improve, as the TCR was improved to 0.00262 °C−1 under heat treatment condition at 160°. The Ag layer obtained excellent linearity, lower hysteresis and drift value, as well as good reliability and bending resistance when the sputtering power was 90 W. The flexible temperature sensor based on the coated polyester fabric improved the softness and comfortableness of sensor, which can be further applied in intelligent wearable products.