diff --git a/lib_com/ivas_dirac_com.c b/lib_com/ivas_dirac_com.c
index 65464090296ab7865b28844c81cfb2c695cbf91f..0d6f4ef6184870dff53e818a0a7468e1c1a1b954 100644
--- a/lib_com/ivas_dirac_com.c
+++ b/lib_com/ivas_dirac_com.c
@@ -346,7 +346,11 @@ void ivas_get_dirac_sba_max_md_bits(
         /* OSBA needs an additional 2-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 0c6be762476b9249fd0ed69fb6ef83667d8e3008..9df46ff77c28c8cf30494403503ad3fab99e48d2 100644
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -193,6 +193,7 @@
 #define FIX_1044_ISM_REND_MEMORY                        /* VA: issue 1044: Lower the memory of the ISM renderer handle. */
 #define NONBE_FIX_1063_DIV_BY_ZERO_SUMNRG               /* VoiceAge: issue 1063: division by zero for angle_rot feature in the UNCLR classifier */
 #define FIX_1060_USAN_ARRAY_BOUNDS                      /* FhG: issue 1060: USAN array-bounds errors */
+#define NONBE_FIX_SBA_SIGNALING_BITS_B                  /* FhG: issue 1061: option B: signal sba order additionally in OSBA */
 
 #define NONBE_FIX_984_OMASA_EXT_OUTPUT                  /* Nok: issue 1497 - porting OMASA EXT MR   */
 /* #################### End BASOP porting switches ############################ */
diff --git a/lib_dec/ivas_init_dec.c b/lib_dec/ivas_init_dec.c
index a2a2ca32dc3ff013a5bdf87ba8c0785e370482b8..32e851d4e10ec1e9a1c16de5c829b58ce0303ab0 100644
--- a/lib_dec/ivas_init_dec.c
+++ b/lib_dec/ivas_init_dec.c
@@ -415,22 +415,36 @@ 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 )
             {
diff --git a/lib_enc/ivas_mct_core_enc.c b/lib_enc/ivas_mct_core_enc.c
index e0a643e672f50a3052df8c26777d35c083c39c9f..68c5c4fa4b3baa7bccb989a990f54852aac9fc06 100644
--- a/lib_enc/ivas_mct_core_enc.c
+++ b/lib_enc/ivas_mct_core_enc.c
@@ -497,10 +497,18 @@ 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 +582,11 @@ 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 ac5611d69f559ca4d50c9d8731de35619980719b..661f7958a10da3d2994a948ef62ab761581af890 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 );
         }