Requires the library mod Collective.
Player Tracking Compass is a mod which adds a Tracking Compass, which tracks the nearest player on right click. If the player is within 10 blocks, it will track the next nearest player. This way you can use teams and track new targets when close together. Works separately from the default Minecraft compass.
Required on both the server and the client.
The Tracking Compass is a separate item from the normal compass. It can be created with this recipe:
Right clicking the compass results in the tracking of the player Serilum:
In this case the player Serilum is too close, and nobody else is online, so the tracking compass doesn’t work: