Using multiple position sensors in the control system of Two-Degrees of Freedom (2-DOF) motors causes it more complicated than that of conventional 1-DOF ones. However, employing a 2-DOF position sensor in comparison with two independent sensors, reduces the complexity, mass and volume of the system. The common 2-DOF sensors are able to determine the position in linear, rotational, and helical motion. Yet, they suffer from accuracy reduction due to the longitudinal end effect. Therefore, analytical modelling and the relevant compensation methods are discussed. The accuracy of the model is approved by comparing its results with those of 3D time transient finite element method. Afterwards, the model is used for compensating the end effects. Finally, the optimised 2-DOF resolver is prototyped and tested. The result of experimental test shows the proposed resolver's success.