An electro-hydraulic pressure regulating valve including a tubular valve body, a partition in the valve body dividing the latter into a valve chamber and a solenoid chamber, a valve sleeve in the valve chamber with a piston slidable in the sleeve and defining a bias pressure chamber between the piston and the partition and a control pressure chamber on the opposite side of the piston, closed center regulating ports on the piston and the valve sleeve for regulating a supply pressure to a control pressure in the control pressure chamber, a bias pressure orifice between a supply pressure port and the bias pressure chamber, a fluid strainer between the supply pressure port and the bias pressure orifice, a relief orifice in the partition between the bias pressure chamber and a fluid sump, and a solenoid operated valve normally closing the relief orifice and operative when energized to open the relief orifice. The valve is suited for miniaturization and regulates control pressure as a function of bias pressure without exhausting significant quantities of supply pressure directly to the sump.