Intrinsic 2D magnets have recently been established as a playground for studies on fundamentals of magnetism, quantum phases, and spintronic applications. The inherent instability at low dimensionality often results in coexistence and/or competition of different magnetic orders. Such instability of magnetic ordering may manifest itself as phase-separated states. In 4f 2D materials, magnetic phase separation is expressed in various experiments; however, the experimental evidence is circumstantial. Here, we employ a high-sensitivity MFM technique to probe the spatial distribution of magnetic states in the paradigmatic 4f 2D ferromagnet EuGe2. Below the ferromagnetic transition temperature, we discover the phase-separated state and follow its evolution with temperature and magnetic field. The characteristic length-scale of magnetic domains amounts to hundreds of nanometers. These observations strongly shape our understanding of the magnetic states in 2D materials at the monolayer limit and contribute to engineering of ultra-compact spintronics.