As track density requirements for disk drives have grown more aggressive, GMR devices have been pushed to narrower track widths to match the track pitch of the drive width. Narrower track widths degrade stability and can cause amplitude loss and side reading. This problem has been overcome by placing an additional layer of soft magnetic material on the conductive layer. The added layer prevents flux leakage into the gap region. A non-magnetic layer must be included to prevent exchange coupling to nearby magnetic layers. In at least one embodiment the conductive leads are used to accomplish this. A process for manufacturing the device is also described.