The influence of mechanical stress on low frequency AC magnetic permeability was studied. The cold-drawn bars with C45 steel were subjected to investigation. The tensile stress (within elastic regime) was applied by means of material testing machine. Simple measuring system was assembled, which consisted of: function generator with magnetizing coil, detection coil and precise AC voltmeter. The registered changes of induced voltage were proportional to the change of magnetic permeability of the stretched rods. The obtained results were almost frequency-independent due to low frequency limit (250-500 Hz, weak eddy currents, no spin-origin energy dissipation). A significant magneto-mechanical hysteresis was observed slightly evolving from cycle to cycle with tendency of stabilization. The extension of basic Stoner-Wohlfarth model of magnetic permeability allowed to fit the data reproducing hysteretic behavior and considering the relaxation of the internal stress. The proposed, low-cost method is suitable in the industrial applications for stress control in large-sized steel elements.