diff --git a/lib_com/ivas_dirac_com_fx.c b/lib_com/ivas_dirac_com_fx.c
index 31e924d06520f7efcaa100a0aca7d5c3ed4403bc..c48c528535b8ca3c30a74902945badf5fdd17c91 100644
--- a/lib_com/ivas_dirac_com_fx.c
+++ b/lib_com/ivas_dirac_com_fx.c
@@ -397,8 +397,13 @@ void ivas_get_dirac_sba_max_md_bits_fx(
         /* OSBA needs an additional 2-bits safety margin to avoid acelp crashes */
         IF( EQ_32( ivas_format, SBA_ISM_FORMAT ) )
         {
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+            ( *metadata_max_bits ) = sub( ( *metadata_max_bits ), 7 );
+            move16();
+#else
             ( *metadata_max_bits ) = sub( ( *metadata_max_bits ), 3 );
             move16();
+#endif
         }
     }
     ELSE IF( LE_32( sba_total_brate, IVAS_32k ) )
diff --git a/lib_com/options.h b/lib_com/options.h
index 692a6dbbaa7a2cb2a5b24c34bef52767702f3b54..67aafdc6e4e7355554213a24725719086dfba9c1 100755
--- a/lib_com/options.h
+++ b/lib_com/options.h
@@ -111,6 +111,7 @@
 #define NON_BE_FIX_1041_USE_OLD_CNG_LSPS_IF_NONSTAB     /* FhG: fix bug in TD MDCT-Stereo concealment */
 #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 */
 
 /* #################### End BASOP porting switches ############################ */
 
diff --git a/lib_dec/ivas_init_dec_fx.c b/lib_dec/ivas_init_dec_fx.c
index 3fe15331c60b3e9dc6740a9e4d97b2011f5e6e87..e119b37c4dea95acc6ca2da02297abff2e7a1197 100644
--- a/lib_dec/ivas_init_dec_fx.c
+++ b/lib_dec/ivas_init_dec_fx.c
@@ -477,14 +477,19 @@ ivas_error ivas_dec_setup(
             move16();
 
             test();
+#ifndef NONBE_FIX_SBA_SIGNALING_BITS_B
             IF( LT_32( ivas_total_brate, IVAS_24k4 ) || GE_32( ivas_total_brate, IVAS_256k ) )
             {
+#endif
                 /* read Ambisonic (SBA) planar flag */
                 st_ivas->sba_planar = st_ivas->bit_stream[num_bits_read];
                 move16();
                 num_bits_read = add( 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];
             move16();
             st_ivas->sba_order = add( st_ivas->sba_order, shl( st_ivas->bit_stream[num_bits_read], 1 ) );
@@ -492,11 +497,21 @@ ivas_error ivas_dec_setup(
             num_bits_read = add( 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 ( LT_32( 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 ( LT_32( ivas_total_brate, IVAS_256k ) )
             {
                 st_ivas->sba_order = 3;
                 move16();
             }
+#endif
 
             test();
             IF( st_ivas->ini_frame > 0 && NE_32( ivas_total_brate, st_ivas->last_active_ivas_total_brate ) )
diff --git a/lib_enc/ivas_mct_core_enc_fx.c b/lib_enc/ivas_mct_core_enc_fx.c
index 71890120bfdece03191de1ec21b2313a6f278756..4eacd287bdc56699d66360b9f58c2df8727b3f41 100644
--- a/lib_enc/ivas_mct_core_enc_fx.c
+++ b/lib_enc/ivas_mct_core_enc_fx.c
@@ -700,10 +700,18 @@ void ivas_mct_core_enc_fx(
         nAvailBits = sub( nAvailBits, IVAS_FORMAT_SIGNALING_NBITS_EXTENDED );
         nAvailBits = sub( nAvailBits, SBA_ORDER_BITS + SBA_PLANAR_BITS );
         test();
+#ifdef NONBE_FIX_SBA_SIGNALING_BITS_B
+        /*MCT is used at bitrates > 80 kbps and additional 1 bit is present at these bitrates*/
+        if ( EQ_32( ivas_format, SBA_ISM_FORMAT ) )
+        {
+            nAvailBits -= IVAS_COMBINED_FORMAT_SIGNALLING_BITS;
+        }
+#else
         if ( EQ_32( ivas_format, SBA_ISM_FORMAT ) && GT_16( nChannels, 4 ) )
         {
             nAvailBits = sub( nAvailBits, IVAS_COMBINED_FORMAT_SIGNALLING_BITS );
         }
+#endif
     }
 
     FOR( ( cpe_id = 0, i = 0 ); cpe_id < nCPE; cpe_id++ )
diff --git a/lib_enc/ivas_spar_encoder_fx.c b/lib_enc/ivas_spar_encoder_fx.c
index 8143a8c33389b5f70e273554410ced1b7ebd2dff..d7f34022bb0d80d1927c2fc88e3d86b0c842de85 100644
--- a/lib_enc/ivas_spar_encoder_fx.c
+++ b/lib_enc/ivas_spar_encoder_fx.c
@@ -371,9 +371,18 @@ ivas_error ivas_spar_enc_fx(
 
             /* hack to indicate OSBA bitstream at VLBR */
             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 );
         }