Many studies have been carried out to produce magnetic resonance imaging (MRI) phantoms as alternative to water phantom. Among the important properties of a phantom are the T1 and T2 relaxation times. The objective of this study is to investigate the T1 and T2 characteristics of the agarose gel phantoms with different relaxation modifier (gadolinium (III) oxide, Gd2O3) concentrations or [Gd2O3]. Six agarose gel phantoms were prepared with different [Gd2O3]. The T1 (fixed echo time (TE) and different repetition time (TR)) and T2 (fixed TR and different TE) measurements on all phantoms were conducted using the 3-T MRI system via spin echo (SE) and turbo spin echo (TSE) sequences, respectively. The signal-to-noise ratio (SNR) of all phantoms was calculated using Image-J software by implementing the region of interest (ROI) analysis. The SNR against TR and SNR against TE curves were fitted to the exponential equations for saturation, T1 and T2 determination. For every phantom, T1 curve demonstrated that the SNR increased exponentially with increasing TR, while T2 curves showed that the SNR decreased exponentially with increasing TE. Gd2O3 was found to successfully act as the relaxation modifier for the T1 but not the T2 curves. The T1 curve started to show saturated SNR (SNRo) and increasing SNRo for TR > 1000 ms and [Gd2O3] = 0.005 g/ml or higher. These behaviours are explained based on the dipole-dipole interaction that increases in phantoms with higher [Gd2O3], thus shortening the T1 relaxation. However, a systematic change in the T2 parameters with increasing [Gd2O3] was not observed. While Gd2O3 has significant effects on T1 relaxation parameters, the T2 relaxation parameters were minimally affected. With a shorter T1, the Gd2O3 added agarose gel can potentially be used as test phantom in fast imaging sequence, e.g. gradient echo pulse sequences.