A torque sensor comprising: a at least partially hollow longitudinally extending member, a magneto-elastically active region effective at the inner surface of the member in such a manner that torque applied to the member is proportionally transmitted to the active region (6, 8, 10), the active region comprising at least one region magnetically polarized (6, 8, 10)such that the magnetized polarity (6, 8, 10) becomes increasingly helically shaped as the applied torque increases; a plurality of primary magnetic field sensors (C1, C2) arranged approximate the at least one region for outputting a first signal corresponding to a torque-dependent magnetic flux emanating from the active region (6, 8, 10); at least one secondary magnetic field sensor (L, R) axially spaced in a first direction by a pre-determined first distance from the plurality of primary magnetic field sensors (C1, C2) for outputting a second signal corresponding to an ambient magnetic flux emanating from a near magnetic field source; at least one secondary magnetic field sensor (L, R) axially spaced in a second direction opposite the first direction by a pre-determined second distance from the plurality of primary magnetic field sensors (C1, C2) for outputting a third signal corresponding to the ambient magnetic flux emanating from the near magnetic field source; means for adjusting the first signal using the second and the third signals thereby compensating for the effects of the near magnetic field source, characterized in that the primary and secondary magnetic field sensors (C1, C2, R, L) are arranged inside the longitudinally extending member. a at least partially hollow longitudinally extending member, a magneto-elastically active region effective at the inner surface of the member in such a manner that torque applied to the member is proportionally transmitted to the active region (6, 8, 10), the active region comprising at least one region magnetically polarized (6, 8, 10)such that the magnetized polarity (6, 8, 10) becomes increasingly helically shaped as the applied torque increases; a plurality of primary magnetic field sensors (C1, C2) arranged approximate the at least one region for outputting a first signal corresponding to a torque-dependent magnetic flux emanating from the active region (6, 8, 10); at least one secondary magnetic field sensor (L, R) axially spaced in a first direction by a pre-determined first distance from the plurality of primary magnetic field sensors (C1, C2) for outputting a second signal corresponding to an ambient magnetic flux emanating from a near magnetic field source; at least one secondary magnetic field sensor (L, R) axially spaced in a second direction opposite the first direction by a pre-determined second distance from the plurality of primary magnetic field sensors (C1, C2) for outputting a third signal corresponding to the ambient magnetic flux emanating from the near magnetic field source; means for adjusting the first signal using the second and the third signals thereby compensating for the effects of the near magnetic field source, characterized in that the primary and secondary magnetic field sensors (C1, C2, R, L) are arranged inside the longitudinally extending member.