In this paper, the algorithm, Euler scheme-the modified velocity-verlet algorithm (ES-MVVA) based on dissipative particle dynamics (DPD) method, is applied to simulate a two-dimensional ferromagnetic colloidal suspension. The very desirable aggregate structures of magnetic particles are obtained by using the above-mentioned algorithm, which are in qualitatively good agreement with those in the literature obtained by other simulation methods for different magnetic particle–particle interaction strengths. At the same time, the radial distribution functions of magnetic particles and the mean equilibrium temperatures of the system are also calculated. Next, the mean equilibrium velocities of magnetic and dissipative particles are calculated, by comparing the results obtained by ES-MVVA with those obtained by other algorithm for different time step sizes, it shows the validity and good accuracy of the present algorithm. So, the DPD-based algorithm presented in this paper is a powerful tool for simulation of magnetic colloidal suspensions.