A spin-valve type thin film element includes an antiferromagnetic layer, a pinned magnetic layer, a free magnetic layer, a non-magnetic electrically conductive layer, a bias layer, and an electrically conductive layer. The magnetization direction of the pinned magnetic layer in the end regions in relation to the track width is fixed in the direction of the leakage magnetic field from a recording medium, and the magnetization direction of the pinned magnetic layer in the central region is fixed in the direction inclined in relation to the direction of the leakage magnetic field from the recording medium. A method for manufacturing a spin-valve type thin film element includes the steps of forming a multi-layered film, magnetic annealing at a temperature T1, patterning the multi-layered film into a predetermined shape, forming a bias layer on both sides of the multi-layered film, magnetizing the bias layer, annealing without applying a magnetic field at a temperature T2, and magnetizing the bias layer.