One of the disadvantages of permanent magnet (PM) transverse flux machines is high magnetic flux leakage in the stator and rotor cores. To improve the magnetic circuit of this class of machines, a generator with double coil was designed and built to research the problem. The machine topology is different from the topologies previously introduced in the literature. The main difference was in the stator and rotor configurations. The stator of the generator is divided by two parts: 1) outer and 2) inner. Two coils were placed in the inner and outer stators. The rotor with PMs was placed between the two stators. To diminish magnetic flux leakage in the stator and to decrease machine’s weight, magnetic poles were placed in aluminum housings. This resulted in high-density eddy currents induced in the housings, and a significant raise of the temperature. The housing of the machine was modified. The prototype test showed that the modified version of the stator contributed to a significant decrease in temperature. Electromechanical parameters and cogging torque of the proposed generator is also studied and presented in this paper.