In this paper we present a mathematical analysis for the magneto hydrodynamic (MHD) axi-symmetric stagnation-point flow and heat transfer over a shrinking sheet which shrinks axi-symmetrically in its own plane. The governing partial differential equations along with the boundary conditions are first cast into a dimensionless form and then these equations are solved numerically by shooting technique. Thermal conductivity is assumed to vary linearly with the temperature. Temperature profiles are obtained for two different types of heating process namely (i) the sheet with prescribed surface temperature (PST) and (ii) the sheet with prescribed surface heat flux (PHF). The effects of various physical parameters on the flow and heat transfer characteristics are presented graphically and discussed.