Many preparation methods are there such as coprecipitation, autocombustion, high temperature decomposition of organic precursors, reverse micelle method etc.
My requirement is mono-dispersed nanoparticles below 10-20 nm is size.
Applicability of magnetic nano-particles in "Biomedical applications" is pretty broad... ranging from diagnosis (imaging) & treatment (drug delivery).. Search SPIONs.. super paramagnetic iron oxide nano particles in google.. many good review articles on this topic.
Apparently, you can find much about this in already published literature and also by following as per the suggestions of respected peers above. I would recommend you follow the thermal decomposition method. It might result in uniform and fine biocompatible magnetic nanoparticles.
Polyol method provides particle sizes of your choice (10-20 nm) but there may be agglomeration. Sonochemical gives in monodispersity, but the particle sizes are slightly larger. You can use capping agents to lower the particle sizes. It all depends on your specific application again in biomedical lot.
There are many methods in preparing nano-particles. We have adopted a simple thermal method involving the use of nitrates dissolving in water and capping agent such as PVP or PVA . After stirring and heating at low temperature the precursors are encapsulated with PVP and after grinding and calcining at around 680C nano-particles could be formed.