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Small sized and high performance millimetre wave source, which consists of Gunn diode mount, circulator and matched load, was developed based on the NRD guide technology at 60 GHz. Main emphasis was placed on compatibility with rectangular waveguide systems. A transition between an NRD guide and a rectangular waveguide was devised and fully optimized by using electromagnetic simulator (HFSS). Good advantages such as a medium level output power of 13 dBm, a small phase noise less than -113 dBc/Hz for 300 kHz offset, and a small frequency stability less than -1.3 ppm/°C were obtained. The size is smaller than that of a name card. It is confirmed that the performance of the developed Gunn oscillator is higher than that of a commercially available rectangular waveguide type Gunn oscillator from the viewpoint of the output power, phase noise, and frequency stability.