The magnetic permeability enhancement effect in the Fe 86-x Nb x B 14 (x = 5, 6) amorphous alloys was studied by making use of magnetic measurements (permeability, coercive field, magnetization) and Mössbauer spectroscopy. It was shown that annealing for 1 h at elevated temperatures causes a significant increase of magnetic permeability and a reduction of material instabilities. The observed effect takes place in the so-called relaxed amorphous phase without forming any nanocrystallites and may be attributed to annealing out of free volume leading to formation of small iron clusters with different magnetic structures. . (a) 202, No. 13 (2005) / www.pss-a.com 2575