A position sensor system (100; 200; 300) for determining a position (φ, x) of a sensor device (101; 201; 301) movable along a predefined path relative to a magnetic source (102; 202; 302), or vice versa, the position sensor system comprising: - said sensor device (101; 201; 301); - said magnetic source (102; 202; 302) comprising a first plurality of alternating magnetic poles arranged along a first track, and comprising a second plurality of alternating magnetic poles arranged along a second track, wherein centres of the magnetic poles are spaced apart by a predefined pole pitch (pp); wherein a centreline of the first track is spaced from a centreline of the second track by a predefined track distance (dt), and wherein the magnetization of the first track and the magnetization of the second track are substantially 180° phase shifted; and wherein the second plurality is equal to the first plurality; wherein the sensor device (101; 201; 301) comprises a substrate with a plurality of magnetic sensors spanning a distance along the predefined path which is smaller than 1.40 times the pole pitch (pp); the sensor device being further configured for deriving a plurality of difference signals (diff1, diff2) from said plurality of magnetic field components, and for deriving said position from said plurality of difference signals (diff1, diff2); characterized in that the substrate is oriented parallel or tangential to a surface of the magnetic source (102; 202; 302); the plurality of magnetic sensors are configured for measuring a plurality of magnetic field components (BxA, BzA, BxB, BzB), including: - a first magnetic field component (BxA) oriented parallel to the substrate at a first sensor location located above the first track; - a second magnetic field component (BxB) parallel to the first magnetic field component at a second sensor location located above the second track; - a third magnetic field component (BzA; BzC) oriented perpendicular to the substrate at said first sensor location or at a third sensor location located above the first track; - a fourth magnetic field component (BzB,; BzD) oriented perpendicular to the substrate at said second sensor location or at a fourth sensor location located above the second track. - said sensor device (101; 201; 301); - said magnetic source (102; 202; 302) comprising a first plurality of alternating magnetic poles arranged along a first track, and comprising a second plurality of alternating magnetic poles arranged along a second track, wherein centres of the magnetic poles are spaced apart by a predefined pole pitch (pp); wherein a centreline of the first track is spaced from a centreline of the second track by a predefined track distance (dt), and wherein the magnetization of the first track and the magnetization of the second track are substantially 180° phase shifted; and wherein the second plurality is equal to the first plurality; wherein the sensor device (101; 201; 301) comprises a substrate with a plurality of magnetic sensors spanning a distance along the predefined path which is smaller than 1.40 times the pole pitch (pp); the sensor device being further configured for deriving a plurality of difference signals (diff1, diff2) from said plurality of magnetic field components, and for deriving said position from said plurality of difference signals (diff1, diff2); characterized in that the substrate is oriented parallel or tangential to a surface of the magnetic source (102; 202; 302); the plurality of magnetic sensors are configured for measuring a plurality of magnetic field components (BxA, BzA, BxB, BzB), including: - a first magnetic field component (BxA) oriented parallel to the substrate at a first sensor location located above the first track; - a second magnetic field component (BxB) parallel to the first magnetic field component at a second sensor location located above the second track; - a third magnetic field component (BzA; BzC) oriented perpendicular to the substrate at said first sensor location or at a third sensor location located above the first track; - a fourth magnetic field component (BzB,; BzD) oriented perpendicular to the substrate at said second sensor location or at a fourth sensor location located above the second track. - a first magnetic field component (BxA) oriented parallel to the substrate at a first sensor location located above the first track; - a second magnetic field component (BxB) parallel to the first magnetic field component at a second sensor location located above the second track; - a third magnetic field component (BzA; BzC) oriented perpendicular to the substrate at said first sensor location or at a third sensor location located above the first track; - a fourth magnetic field component (BzB,; BzD) oriented perpendicular to the substrate at said second sensor location or at a fourth sensor location located above the second track.