This paper presents an upgrade of a Phantom Premium 1.5 haptic device for use within a functional magnetic resonance imaging (fMRI) environment. A special mechanical extension that allows the haptic device to operate at a safe distance from the high-density magnetic field of an fMRI scanner has been developed. Extended haptic system was subjected to a series of tests to confirm electromagnetic compatibility with the fMRI scanner, for which key results are presented. With this fMRI compatible haptic platform a human brain activation during controlled upper limb movements can be studied. A simple virtual environment reaching task was programmed to study brain motor control functions. At the end preliminary results of an ongoing neurophysiological study are presented.