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, cause amplitude loss, due to the field originating from the hard bias structure, and side reading. This problem has been overcome by adding an additional layer of soft magnetic material above the hard bias layers. The added layer provides flux closure to the hard bias layers thereby preventing flux leakage into the gap region. A non-magnetic layer must be included to prevent exchange coupling to the hard bias layers. In at least one embodiment the conductive leads are used to accomplish this. A process for manufacturing the device is also described.