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In this paper a new model for orthogonal fluxgate is presented. A first attempt to explain the working principle of the orthogonal fluxgates was done in the 1970's. We show that this model does not work well on recently developed orthogonal fluxgate sensors with thin-film core on microwire. A new more accurate two-domain model based both on domain wall motion and magnetization rotation is proposed. We show that the new model better explains the observed properties of thin-film orthogonal fluxgate.