This paper presents a new scientific contribution to the two-dimensional red(2-D) subdomain technique in polar coordinates taking into account the finite relative permeability of the ferromagnetic material. The constant relative permeability corresponds to the linear part of the nonlinear
curve. As in the conventional technique, the separation of variables method and the Fourier series are used for the resolution of magnetostatic Maxwell equations in each region. The general solutions of the magnetic field in subdomains, as well as the boundary conditions (BCs) between regions are different from the conventional method. In the proposed method, the magnetic field solution in each subdomain is a superposition of two magnetic quantities in the two directions (i.e., r
-axis), and the BCs between two regions are also in both directions. For example, the scientific contribution has been applied to an air- or iron-cored coil supplied by a constant current. The distribution of local quantities (i.e., the magnetic vector potential and flux density) has been validated by a corresponding 2-D finite-element analysis (FEA). The obtained semi-analytical results are in very good agreement with those of the numerical method.