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Purpose – The paper purposes a novel SFPM machine topology with radial and circumferential permanent magnets (PMs). The paper aims to discuss this issue. Design/methodology/approach – In order to reduce the flux leakage in the stator-outer region and consequently achieve higher magnetic material utilization in switched flux permanent magnet (SFPM) machine, a novel topology with radial and circumferential PMs is proposed. This topology (SFRCPM) has the same structure as conventional SFPM (CSFPM) machine except of the additional set of radially magnetized PMs located around the back iron and surrounded by a laminated ring frame. Using finite element analysis (FEA) the influence of the design parameters on the performance is investigated in order to obtain an effective optimization procedure. Internal and external rotor SFRCPM machines with either NdFeB or ferrite magnets are investigated, optimized and compared with the CSFPM machine having the same size, copper loss and stator/rotor pole combination. Findings – It is concluded that comparing SFRCPM with its CSFPM machine counterpart, internal rotor SFRCPM machine can achieve high PM flux-linkage per magnet volume, however reduced slot area leads to low output torque, whereas external rotor SFRCPM machine can produce higher torque and torque per magnet volume. Originality/value – This paper proposes a novel SFPM machine topology. [ABSTRACT FROM AUTHOR]