diff --git a/lib_com/ivas_dirac_com.c b/lib_com/ivas_dirac_com.c
index dfedb974a1c42ea781884a8854052e0f6c006730..80f49f95fb1718ac92b6d7314b9380754ab803f1 100644
--- a/lib_com/ivas_dirac_com.c
+++ b/lib_com/ivas_dirac_com.c
@@ -342,10 +342,14 @@ void ivas_get_dirac_sba_max_md_bits(
     {
         *bits_frame_nominal = ACELP_16k40 / FRAMES_PER_SEC;
         *metadata_max_bits = 103;
-        /* OSBA needs an additional 2-bits safety margin to avoid acelp crashes */
+        /* OSBA needs an additional 5-bits safety margin to avoid acelp crashes */
         if ( ivas_format == SBA_ISM_FORMAT )
         {
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+            ( *metadata_max_bits ) -= 7;
+#else
             ( *metadata_max_bits ) -= 3;
+#endif
         }
     }
     else if ( sba_total_brate <= IVAS_32k )
diff --git a/lib_com/options.h b/lib_com/options.h
index fa19719a5f1761b2b1641fe4cd5e72cc57dd4a83..eabcfa0239963ba95d4ed63a945787e41e7a4ddb 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -173,6 +173,8 @@
 #define NONBE_FIX_1065_ISM_MD_HANDLE                    /* VA: issue 1065: Allocate only the necessary number of ISM MD decoder handles. */
 #define NONBE_FIX_1028_1DB_TCX_LEVEL_DROP               /* VA: Harmonize the logic setting LP weighting factor between TCX encoder and TCX decoder */
 
+#define NONBE_FIX_SBA_SIGNALING_BITS_B                  /* FhG: issue 1061: option B: signal sba order additionally in OSBA */
+
 /* ##################### End NON-BE switches ########################### */
 
 /* ################## End DEVELOPMENT switches ######################### */
diff --git a/lib_dec/ivas_init_dec.c b/lib_dec/ivas_init_dec.c
index 1b83a06596c008991eebadea66e04fd0816534f9..db95801840d2b3637edd9c373557a5997613035a 100644
--- a/lib_dec/ivas_init_dec.c
+++ b/lib_dec/ivas_init_dec.c
@@ -444,22 +444,36 @@ ivas_error ivas_dec_setup(
             /* the number of objects is written at the end of the bitstream, in the SBA metadata */
             st_ivas->nchan_ism = 2 * st_ivas->bit_stream[ivas_total_brate / FRAMES_PER_SEC - 1] + st_ivas->bit_stream[ivas_total_brate / FRAMES_PER_SEC - 2] + 1;
 
+#ifndef NONBE_FIX_SBA_SIGNALING_BITS_B
             if ( ivas_total_brate < IVAS_24k4 || ivas_total_brate >= IVAS_256k )
             {
+#endif
                 /* read Ambisonic (SBA) planar flag */
                 st_ivas->sba_planar = st_ivas->bit_stream[num_bits_read];
                 num_bits_read += SBA_PLANAR_BITS;
+#ifndef NONBE_FIX_SBA_SIGNALING_BITS_B
             }
+#endif
 
+            /* read Ambisonic (SBA) order (0 for signaling OSBA format at low bitrates)*/
             st_ivas->sba_order = st_ivas->bit_stream[num_bits_read + 1];
             st_ivas->sba_order += 2 * st_ivas->bit_stream[num_bits_read];
             num_bits_read += SBA_ORDER_BITS;
 
-            /* read Ambisonic (SBA) order */
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+            /* read the real Ambisonic order when the above bits are used to signal OSBA format */
+            if ( ivas_total_brate < IVAS_24k4 )
+            {
+                st_ivas->sba_order = st_ivas->bit_stream[num_bits_read + 1];
+                st_ivas->sba_order += 2 * st_ivas->bit_stream[num_bits_read];
+                num_bits_read += SBA_ORDER_BITS;
+            }
+#else
             if ( ivas_total_brate < IVAS_256k )
             {
                 st_ivas->sba_order = 3;
             }
+#endif
 
             if ( st_ivas->ini_frame > 0 && ivas_total_brate != st_ivas->last_active_ivas_total_brate )
             {
@@ -777,7 +791,6 @@ static ivas_error ivas_read_format(
                             st_ivas->ivas_format = MASA_ISM_FORMAT;
                         }
                     }
-
                     ( *num_bits_read )++;
                 }
                 break;
diff --git a/lib_enc/ivas_mct_core_enc.c b/lib_enc/ivas_mct_core_enc.c
index 8705d94c64ab5562916c9ce9cdf7c63b27919ac6..d4aad15afaee54f0bc6d84d5821ffe1e2f8a4520 100644
--- a/lib_enc/ivas_mct_core_enc.c
+++ b/lib_enc/ivas_mct_core_enc.c
@@ -497,10 +497,19 @@ void ivas_mct_core_enc(
     {
         nAvailBits -= IVAS_FORMAT_SIGNALING_NBITS_EXTENDED;
         nAvailBits -= SBA_ORDER_BITS + SBA_PLANAR_BITS;
+
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+        /*MCT is used at bitrates > 80 kbps and additional 1 bit is present at these bitrates*/
+        if ( ivas_format == SBA_ISM_FORMAT )
+        {
+            nAvailBits -= IVAS_COMBINED_FORMAT_SIGNALLING_BITS;
+        }
+#else
         if ( ivas_format == SBA_ISM_FORMAT && nChannels > 4 )
         {
             nAvailBits -= IVAS_COMBINED_FORMAT_SIGNALLING_BITS;
         }
+#endif
     }
 
     for ( cpe_id = 0, i = 0; cpe_id < nCPE; cpe_id++ )
@@ -574,7 +583,13 @@ void ivas_mct_core_enc(
 
 #ifdef DEBUGGING
     format_bits = ( ivas_format == MC_FORMAT ? IVAS_FORMAT_SIGNALING_NBITS + MC_LS_SETUP_BITS : IVAS_FORMAT_SIGNALING_NBITS_EXTENDED + SBA_ORDER_BITS + SBA_PLANAR_BITS );
+
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+    format_bits += ( ivas_format == SBA_ISM_FORMAT );
+#else
     format_bits += ( ivas_format == SBA_ISM_FORMAT && nChannels > FOA_CHANNELS );
+#endif
+
     mct_bits += hMCT->nBitsMCT + hMCT->nchan_out_woLFE;
     assert( ( total_brate + ( NBITS_BWIDTH + format_bits + mct_bits + sba_meta + lfe_bits ) * FRAMES_PER_SEC ) == ivas_total_brate );
 #endif
diff --git a/lib_enc/ivas_spar_encoder.c b/lib_enc/ivas_spar_encoder.c
index d3ff38062aa496c10ea462c3b966f7b876a9276e..25b8e845833be10fd51cbff3e74edca7b47f799a 100644
--- a/lib_enc/ivas_spar_encoder.c
+++ b/lib_enc/ivas_spar_encoder.c
@@ -354,11 +354,21 @@ ivas_error ivas_spar_enc(
             /* Write SBA planar flag */
             push_indice( st0->hBstr, IND_SMODE, hEncoderConfig->sba_planar, SBA_PLANAR_BITS );
 
-            /* hack to indicate OSBA bitstream at VLBR */
+            /* hack to indicate OSBA format (SBA order = 0) at low bitrates */
             push_indice( st0->hBstr, IND_SMODE, 0, SBA_ORDER_BITS );
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+
+            /* additionally code the real SBA order */
+            push_indice( st0->hBstr, IND_SMODE, hEncoderConfig->sba_order, SBA_ORDER_BITS );
+#endif
         }
         else
         {
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+            /* Write SBA planar flag */
+            push_indice( st0->hBstr, IND_SMODE, hEncoderConfig->sba_planar, SBA_PLANAR_BITS );
+#endif
+
             /* Write SBA order */
             push_indice( st0->hBstr, IND_SMODE, hEncoderConfig->sba_order, SBA_ORDER_BITS );
         }