Abstract: We report quenching of the Hall effect with increasing magnetic field confined in a micron-sized spot. Such fields were created by placing tall ferromagnetic pillars on top of a two-dimensional electron gas, which allowed us to achieve the field strength up to 0.4 T under the pillars in the absence of external field. The quenching is accompanied by an anomalous increase in resistance and occurs when the cyclotron diameter matches the size of the magnetic spot. The results are explained by a rapid increase in the number of electrons that are scattered or quasilocalized by the magnetic region.