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In metal machining processes highly accurate distance sensors are indispensable. Due to the progressive development, radar technology could be used for this sensor application. In contrast to other highly accurate measurement systems, radar technology promises a low-cost solution with comparable performance. In this paper a FMCW radar sensor is used for an accurate position detection with micrometer accuracy. A signal processing concept is introduced that combines frequency and phase evaluation to achieve the desired accuracy over a longer distance of up to 3m. The high accuracy is demonstrated within a guided wave measurement setup.