Reactive sputtering process of magnesium target in d.c. planar magnetron discharge using argon and oxygen gases as buffer and reactive gases, respectively, has been investigated. A drastic mode transition between metallic and oxide modes has been observed due to a large difference in the secondary electron emission coefficients of magnesium and magnesium oxide. To describe the experimental results quantitatively, a new reactive sputtering model has been developed. The model is fundamentally based on a simple reactive gas balance model proposed by Berg et al. in 1988, but includes the change in the secondary electron emission coefficient of target. The modified model can deal with the change of plasma properties through the change of ion to electron current ratio at the target, and can quantitatively describe experimental results such as oxygen flow rate dependence of deposition rate and discharge voltage, which were obtained at a constant discharge current.