An approach for coal-based direct reduction of vanadium−titanium magnetite (VTM) raw ore was proposed. Under the optimal reduction conditions with reduction temperature of 1140 °C, reduction time of 3 h, C-to-Fe molar ratio of 1.2∶1, and pre-oxidation temperature of 900 °C, the iron metallization degree is 97.8%. Ultimately, magnetic separation yields an iron concentrate with an Fe content of 76.78 wt.% and efficiency of 93.41%, while the magnetic separation slag has a Ti grade and recovery of 9.36 wt.% and 87.07%, respectively, with a titanium loss of 12.93%. This new strategy eliminates the beneficiation process of VTM raw ore, effectively reduces the Ti content in the iron concentrate, and improves the comprehensive utilization of valuable metals.