The invention relates to a method for producing a high strength coated steel sheet having a yield stress YS>550 MPa, a tensile strength TS>980 MPa, and improved formability and ductility. The steel contains: 0.15%≦C≦0.25%, 1.2%≦Si≦1.8%, 2%≦Mn≦2.4%, 0.1%≦Cr≦0.25%, Al≦0.5%, the balance being Fe and unavoidable impurities. The sheet is annealed at a temperature between TA1=Ac3−0.45*(Ms−QT) and TA2=830° C. for at least 30s then quenched by cooling it to a quenching temperature QT between 180° C. and 300° C., then heated to a partitioning temperature PT between 380° C. and 480° C. and maintained at this temperature for a partitioning time Pt between 0 sec and 300 sec, then either hot dip coated and cooled to the room temperature with a cooling rate of at least 25° C./s below 300° C., or directly cooled to the room temperature with a cooling rate of at least 25° C./s and further electro-galvanized, or cooled to the room temperature with a cooling rate of at least 25° C./s without coating. The steel according to the invention contains 5% to 25% of intercritical ferrite, at least 50% of partitioned martensite, at least 10% of residual austenite, less than 10% of fresh martensite, and bainite, the sum of partitioned martensite and bainite being at least 60%. It also relates to the obtained coated or non coated sheet.