A magnetoreristive head assembly has a magnetic bias level control for continuous compensation of thermal, stray field and stress fluctuations, as well as other types of fluctuations. The magnetoresistive head assembly includes a magnetoresistive element for sensing signals recorded on a magnetic medium, and for generating electrical signals corresponding to the recorded signals. A bias current balancing circuit has an input connected to the magnetoresistive element for sensing the electrical signals and for generating a correction bias current therefrom. A feedback correction circuit converts the correction bias current into a correction magnetic bias field and applies the field to the magnetoresistive element to limit the shifting of a current bias point of the magnetoresistive element and to compensate for bias fluctuations.