A drilling assembly and a method for directional drilling using the drilling assembly. The drilling assembly comprises a drilling bit, a near bit stabilizer and an adjustable gauge stabilizer. The near bit stabilizer is located a first axial distance from a distal end of the drilling assembly and has a near bit stabilizer gauge which is greater than a nominal drilling assembly gauge. The adjustable gauge stabilizer is located a second axial distance from the distal end, which is greater than the first axial distance, and is adjustable between an extended and retracted gauge. The retracted gauge is less than the near bit stabilizer gauge. A bit drop angle is created between the drilling assembly and the drilling bit, while a stabilizer angle is created between the near bit stabilizer and the adjustable gauge stabilizer. The combination of the bit drop angle and the stabilizer angle results in a net build angle of the drilling assembly, when the adjustable gauge stabilizer is adjusted to the retracted gauge, and a net drop angle when adjusted to the extended gauge.