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The source-field method is a very effective way to treat 3-D magnetostatic and magnetodynamic cases for linear and nonlinear studies. In this paper, we propose a variation of this method based on the concept of differential permeability. With this new approach, it is possible to handle nonlinear cases and also more complex hysteretic materials. In this work, we will present the method and consider the first case. The electric circuit is coupled with the magnetic structure and a time stepping technique is used.