On the basis of ALOS PALSAR images, we extracted the time series of surface deformation field of Agung Volcano in Bali Island, Indonesia during 2007 and 2009 by SBAS-InSAR technique, and inversed magma chamber parameters based on the Mogi point source and vertical spheroid models. The results showed that: the interference of atmospheric delayed phase was severe in Agung Volcano area. Agtmg Volcano showed the up- ward deformation characteristic from 2007 to 2009, and kept positive correlation with time. Deformation model- ing indicated that the deformation obtained by vertical spheroid model matched very well with the InSAR-derived deformation, and the magma chamber was located at about 5 km beneath the volcanic edifice. From the deform- ation results derived by SBAS-InSAR, we should monitor the potential eruption of Agung Volcano.