In this paper we present a novel method for depositing NiTi thin film by DC sputtering. The film has transformation temperatures very close to that of the target. The new process involves heating the target and does not require compositional modification of the NiTi target. Results from X-ray diffraction, differential scanning calorimeter, four-point probe, Rutherford backscattering, and transmission electron microscopy are presented. These results indicate that compositional modification can be produced by varying the target temperature. Films produced from hot targets have compositions similar to the target while films produced from cold targets were Ti deficient. Films that were produced by gradual heating of the target have compositional gradation through the film thickness. The gradated films exhibit the two-way shape memory effect.