In this paper an inversion algorithm for controlled-source audio frequency
magnetotelluric data is presented. This algorithm combines 2.5-D finite ele
ment forward modelling with the concepts of rapid relaxation inversion of m
agnetotelluric data. The inversion uses the same technique to compute sensi
tivities as the rapid relaxation inversion, and these approximate sensitivi
ties are validated by comparison with exact 2.5-D sensitivities. The compar
ison shows that the approximate sensitivities are similar in shape to the e
xact sensitivities when transmitter-receiver offsets are greater than one s
kin depth in the Earth. The magnitudes of the two sensitivities differ but
the variations with depth are similar. Tests of the algorithm on synthetic
data and field data provide promising results.