This work presents a novel solution for magnetic field calculation in two-dimensional problems in which one region is defined with space-varying magnetic parameter. The proposed solution extends the well-established Maxwell-Fourier method for calculating magnetic fields in surface-mounted cylindrical high-speed permanent-magnet machines. This contribution is effective to evaluate more realistic magnetic parameters, where measurements of a high-speed permanent-magnet generator prototype indicate saturation in the retaining sleeve due to pole-to-pole leakage flux. The saturation profile is a function of mechanical angle and can be modeled with the aid of a space-varying relative permeability, expressed in terms of a Fourier series. As an example, the presented solution has been applied to a surface-mounted PM machine at no-load condition. Magnetic field calculations show that a simple saturation profile, with low order space-varying permeability in the retaining sleeve significantly affects the magnetic flux density distribution in the air-gap. The analytical solution is confronted with finite-element method, which confirms validity of the proposed methodology.The available literature on (semi-)analytical technique for PM machine evaluation is extensive, with published papers ranging over twenty-five years, to the best of the authors' knowledge [10][11][12]. Moreover, there is still great effort towards methods with better accuracy and less restricting assumptions [4,[13][14][15][16][17][18][19][20][21][22] to list a few recently published works. Dubas et al. [23] realized an overview on the existing (semi-)analytical models in Maxwell-Fourier methods (vis., multi-layer models, eigenvalues model, subdomain technique and hybrid models) with the effect of local/global saturation. Further details, advantages and disadvantages of these techniques can be found in [23][24][25]. Ramakrishnan et al. [13] presented a comprehensive comparison of analytical methods, where a subdomain technique exceeded the others in terms of accuracy with reasonable calculation time.Furthermore, extending the limitations discussed in [25], recent developments include more realistic geometric structures, such as tooth-tips [14][15][16][26][27][28] or rotor eccentricity [27,29]. Chebak et al. [30] and Rahdeh et al. [31] defined more realistic magnetic parameters, but in slotless topologies. Qian et al. [29] and Ortega et al. [32] evaluate several geometries and physical imperfections expected from manufacturing processes. Spranger et al. [33] and Dubas et al. [23,24] have recently developed new techniques to account for finite soft-magnetic permeabilities, respectively: (i) in the multi-layer model using the Cauchy's product theorem [33], and (ii) in the subdomain technique by applying the superposition principle in both directions [23,24]. As discussed by Hannon et al. [34], both methodologies are very effective since they enable the magnetic field calculation in the ferromagnetic material of slotted geometries. The subdomain technique has be...