A method of manufacturing a semiconductor device comprising removing a first oxide layer deposited over a semiconductor substrate, thereby exposing source and drain regions of the substrate. The first oxide layer is configured as an etch-stop for forming silicon nitride sidewall spacers of a gate structure located adjacent to the source and drain regions. The method further comprises depositing a second oxide layer selectively on the exposed source and drain regions and then removing lateral segments of the silicon nitride sidewall spacers.