A current-perpendicular-to-the-plane spin-valve (CPP-SV) magnetoresistive sensor has an insulating layer with at least one aperture that confines the flow of sense current through the active region. The apertures are located closer to the sensing edge of the sensor than to the back edge of the sensor. The aperture (or apertures) are patterned by e-beam lithography, which enables the number, size and location of the apertures to be precisely controlled. The insulating layer may be located inside the electrically conductive nonmagnetic spacer layer, or outside of the magnetically active layers of the spin-valve. More than one insulating layer may be included in the stack to define conductive current paths where the apertures of the insulating layers overlap. The apertures are filled with electrically conductive material, typically the same material as that used for the spacer layer.