A small prototype model of a new undulator is under construction for generating variably polarized radiation. This undulator consists of two pairs of planar permanent magnet arrays above and below the electron orbit plane in a storage ring. This device has no magnetic structures in the horizontal orbit plane in order to avoid the conflict with the aperture of the electron orbit. The on-axis magnetic field generated by shifting the relative position of pairs of magnet arrays in this device induces helical and sinusoidal electron orbit motions. It leads to the generation of circularly and linearly polarized undulator radiation. This new undulator will be installed in the JAERI storage ring (JSR) in order to examine the performance for generating variable polarization.