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Magnetic noise cancellation in trilayer magnetoresistive is studied with micromagnetic model. The noise reduction is related to the antiferromagnetic-type magnetostatic coupling between the two free layers in sub-100-nm sensor sizes. The coupled oscillation of the two free layers produces effective noise reduction in the total output signal and is able to enhance the signal-to-noise ratio. The noise reduction shows dependence on the relative angle between the two free layers. It is adversely affected by ferromagnetic-type coupling between the two free layers. It is sensitive to properties that affect the magnetostatic coupling strength.