diff --git a/Detectors/Upgrades/ALICE3/TRK/base/include/TRKBase/TRKBaseParam.h b/Detectors/Upgrades/ALICE3/TRK/base/include/TRKBase/TRKBaseParam.h
index 6c655571b3e4e..9ea4bd1072d91 100644
--- a/Detectors/Upgrades/ALICE3/TRK/base/include/TRKBase/TRKBaseParam.h
+++ b/Detectors/Upgrades/ALICE3/TRK/base/include/TRKBase/TRKBaseParam.h
@@ -23,12 +23,14 @@ namespace trk
 enum eLayout {
   kCylinder = 0,
   kTurboStaves,
+  kStaggered,
 };
 
 struct TRKBaseParam : public o2::conf::ConfigurableParamHelper<TRKBaseParam> {
   std::string configFile = "";
   float serviceTubeX0 = 0.02f; // X0 Al2O3
-  eLayout layout = kCylinder;  // Type of segmentation of the layers into staves
+  eLayout layoutML = kCylinder; // Type of segmentation for the middle layers
+  eLayout layoutOL = kCylinder; // Type of segmentation for the outer layers
 
   O2ParamDef(TRKBaseParam, "TRKBase");
 };
diff --git a/Detectors/Upgrades/ALICE3/TRK/simulation/include/TRKSimulation/TRKLayer.h b/Detectors/Upgrades/ALICE3/TRK/simulation/include/TRKSimulation/TRKLayer.h
index 2ddf38352ae8c..ef355ec36ce2f 100644
--- a/Detectors/Upgrades/ALICE3/TRK/simulation/include/TRKSimulation/TRKLayer.h
+++ b/Detectors/Upgrades/ALICE3/TRK/simulation/include/TRKSimulation/TRKLayer.h
@@ -39,6 +39,9 @@ class TRKLayer
   auto getNumber() const { return mLayerNumber; }
   auto getName() const { return mLayerName; }
 
+  TGeoVolume* createSensor(std::string type, double width = -1);
+  TGeoVolume* createChip(std::string type, double width = -1);
+  TGeoVolume* createStave(std::string type, double width = -1);
   void createLayer(TGeoVolume* motherVolume);
 
  private:
diff --git a/Detectors/Upgrades/ALICE3/TRK/simulation/src/Detector.cxx b/Detectors/Upgrades/ALICE3/TRK/simulation/src/Detector.cxx
index 9e69a3bd8a88f..b9015ce578caf 100644
--- a/Detectors/Upgrades/ALICE3/TRK/simulation/src/Detector.cxx
+++ b/Detectors/Upgrades/ALICE3/TRK/simulation/src/Detector.cxx
@@ -116,9 +116,18 @@ void Detector::buildTRKNewVacuumVessel()
   mLayers.emplace_back(10, std::string{GeometryTGeo::getTRKLayerPattern() + std::to_string(10)}, 80.f, 258.f, 100.e-3);
 
   auto& trkPars = TRKBaseParam::Instance();
-  mLayers[8].setLayout(trkPars.layout);
-  mLayers[9].setLayout(trkPars.layout);
-  mLayers[10].setLayout(trkPars.layout);
+
+  // Middle layers
+  mLayers[3].setLayout(trkPars.layoutML);
+  mLayers[4].setLayout(trkPars.layoutML);
+  mLayers[5].setLayout(trkPars.layoutML);
+  mLayers[6].setLayout(trkPars.layoutML);
+
+  // Outer tracker
+  mLayers[7].setLayout(trkPars.layoutOL);
+  mLayers[8].setLayout(trkPars.layoutOL);
+  mLayers[9].setLayout(trkPars.layoutOL);
+  mLayers[10].setLayout(trkPars.layoutOL);
 }
 
 void Detector::configFromFile(std::string fileName)
diff --git a/Detectors/Upgrades/ALICE3/TRK/simulation/src/TRKLayer.cxx b/Detectors/Upgrades/ALICE3/TRK/simulation/src/TRKLayer.cxx
index 0d7930c77bb49..e6b00f6e96425 100644
--- a/Detectors/Upgrades/ALICE3/TRK/simulation/src/TRKLayer.cxx
+++ b/Detectors/Upgrades/ALICE3/TRK/simulation/src/TRKLayer.cxx
@@ -41,6 +41,108 @@ TRKLayer::TRKLayer(int layerNumber, std::string layerName, float rInn, float zLe
   LOGP(info, "Creating layer: id: {} rInner: {} rOuter: {} zLength: {} x2X0: {}", mLayerNumber, mInnerRadius, mOuterRadius, mZ, mX2X0);
 }
 
+TGeoVolume* TRKLayer::createSensor(std::string type, double width)
+{
+  TGeoMedium* medSi = gGeoManager->GetMedium("TRK_SILICON$");
+  std::string sensName = Form("%s%d", GeometryTGeo::getTRKSensorPattern(), this->mLayerNumber);
+
+  TGeoShape* sensor;
+
+  if (type == "cylinder") {
+    sensor = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
+  } else if (type == "flat") {
+    if (width < 0) {
+      LOGP(fatal, "Attempting to create sensor with invalid width");
+    }
+    sensor = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
+  } else {
+    LOGP(fatal, "Sensor of type '{}' is not implemented", type);
+  }
+
+  TGeoVolume* sensVol = new TGeoVolume(sensName.c_str(), sensor, medSi);
+  sensVol->SetLineColor(kYellow);
+
+  return sensVol;
+};
+
+TGeoVolume* TRKLayer::createChip(std::string type, double width)
+{
+  TGeoMedium* medSi = gGeoManager->GetMedium("TRK_SILICON$");
+  std::string chipName = o2::trk::GeometryTGeo::getTRKChipPattern() + std::to_string(mLayerNumber);
+
+  TGeoShape* chip;
+  TGeoVolume* sensVol;
+
+  if (type == "cylinder") {
+    chip = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
+    sensVol = createSensor("cylinder");
+  } else if (type == "flat") {
+    if (width < 0) {
+      LOGP(fatal, "Attempting to create chip with invalid width");
+    }
+    chip = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
+    sensVol = createSensor("flat", width);
+  } else {
+    LOGP(fatal, "Sensor of type '{}' is not implemented", type);
+  }
+
+  TGeoVolume* chipVol = new TGeoVolume(chipName.c_str(), chip, medSi);
+  LOGP(info, "Inserting {} in {} ", sensVol->GetName(), chipVol->GetName());
+  chipVol->AddNode(sensVol, 1, nullptr);
+  chipVol->SetLineColor(kYellow);
+
+  return chipVol;
+}
+
+TGeoVolume* TRKLayer::createStave(std::string type, double width)
+{
+  TGeoMedium* medAir = gGeoManager->GetMedium("TRK_AIR$");
+  std::string staveName = o2::trk::GeometryTGeo::getTRKStavePattern() + std::to_string(mLayerNumber);
+
+  TGeoShape* stave;
+  TGeoVolume* staveVol;
+  TGeoVolume* chipVol;
+
+  if (type == "cylinder") {
+    stave = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
+    chipVol = createChip("cylinder");
+    staveVol = new TGeoVolume(staveName.c_str(), stave, medAir);
+    LOGP(info, "Inserting {} in {} ", chipVol->GetName(), staveVol->GetName());
+    staveVol->AddNode(chipVol, 1, nullptr);
+  } else if (type == "flat") {
+    if (width < 0) {
+      LOGP(fatal, "Attempting to create stave with invalid width");
+    }
+    stave = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
+    chipVol = createChip("flat", width);
+    staveVol = new TGeoVolume(staveName.c_str(), stave, medAir);
+    LOGP(info, "Inserting {} in {} ", chipVol->GetName(), staveVol->GetName());
+    staveVol->AddNode(chipVol, 1, nullptr);
+  } else if (type == "staggered") {
+    double width = mModuleWidth * 2; // Each stave has two modules (based on the LOI design)
+    stave = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
+    TGeoVolume* chipVolLeft = createChip("flat", mModuleWidth);
+    TGeoVolume* chipVolRight = createChip("flat", mModuleWidth);
+    staveVol = new TGeoVolume(staveName.c_str(), stave, medAir);
+
+    TGeoCombiTrans* transLeft = new TGeoCombiTrans();
+    transLeft->SetTranslation(-mModuleWidth / 2 + 0.05, 0, 0); // 1mm overlap between the modules
+    LOGP(info, "Inserting {} in {} ", chipVolLeft->GetName(), staveVol->GetName());
+    staveVol->AddNode(chipVolLeft, 0, transLeft);
+
+    TGeoCombiTrans* transRight = new TGeoCombiTrans();
+    transRight->SetTranslation(mModuleWidth / 2 - 0.05, 0.2, 0);
+    LOGP(info, "Inserting {} in {} ", chipVolRight->GetName(), staveVol->GetName());
+    staveVol->AddNode(chipVolRight, 1, transRight);
+  } else {
+    LOGP(fatal, "Chip of type '{}' is not implemented", type);
+  }
+
+  staveVol->SetLineColor(kYellow);
+
+  return staveVol;
+}
+
 void TRKLayer::createLayer(TGeoVolume* motherVolume)
 {
   TGeoMedium* medSi = gGeoManager->GetMedium("TRK_SILICON$");
@@ -56,28 +158,16 @@ void TRKLayer::createLayer(TGeoVolume* motherVolume)
   layerVol->SetLineColor(kYellow);
 
   if (mLayout == eLayout::kCylinder) {
-    TGeoTube* stave = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
-    TGeoTube* chip = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
-    TGeoTube* sensor = new TGeoTube(mInnerRadius, mInnerRadius + mChipThickness, mZ / 2);
-
-    TGeoVolume* sensVol = new TGeoVolume(sensName.c_str(), sensor, medSi);
-    sensVol->SetLineColor(kYellow);
-    TGeoVolume* chipVol = new TGeoVolume(chipName.c_str(), chip, medSi);
-    chipVol->SetLineColor(kYellow);
-    TGeoVolume* staveVol = new TGeoVolume(staveName.c_str(), stave, medSi);
-    staveVol->SetLineColor(kYellow);
-
-    LOGP(info, "Inserting {} in {} ", sensVol->GetName(), chipVol->GetName());
-    chipVol->AddNode(sensVol, 1, nullptr);
-
-    LOGP(info, "Inserting {} in {} ", chipVol->GetName(), staveVol->GetName());
-    staveVol->AddNode(chipVol, 1, nullptr);
-
+    auto staveVol = createStave("cylinder");
     LOGP(info, "Inserting {} in {} ", staveVol->GetName(), layerVol->GetName());
     layerVol->AddNode(staveVol, 1, nullptr);
   } else if (mLayout == eLayout::kTurboStaves) {
     // Compute the number of staves
-    double width = mModuleWidth * 2; // Each stave has two modules (based on the LOI design)
+    double width = mModuleWidth; // Each stave has two modules (based on the LOI design)
+    if (mInnerRadius > 25) {
+      width *= 2; // Outer layers have two modules per stave
+    }
+
     int nStaves = (int)std::ceil(mInnerRadius * 2 * TMath::Pi() / width);
     nStaves += nStaves % 2; // Require an even number of staves
 
@@ -91,29 +181,42 @@ void TRKLayer::createLayer(TGeoVolume* motherVolume)
     LOGP(info, "Creating a layer with {} staves and {} mm overlap", nStaves, overlap * 10);
 
     for (int iStave = 0; iStave < nStaves; iStave++) {
-      TGeoBBox* sensor = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
-      TGeoBBox* chip = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
-      TGeoBBox* stave = new TGeoBBox(width / 2, mChipThickness / 2, mZ / 2);
-
-      TGeoVolume* sensVol = new TGeoVolume(sensName.c_str(), sensor, medSi);
-      sensVol->SetLineColor(kYellow);
-      TGeoVolume* chipVol = new TGeoVolume(chipName.c_str(), chip, medSi);
-      chipVol->SetLineColor(kYellow);
-      TGeoVolume* staveVol = new TGeoVolume(staveName.c_str(), stave, medSi);
-      staveVol->SetLineColor(kYellow);
+      TGeoVolume* staveVol = createStave("flat", width);
 
       // Put the staves in the correct position and orientation
       TGeoCombiTrans* trans = new TGeoCombiTrans();
       double theta = 360. * iStave / nStaves;
-      TGeoRotation* rot = new TGeoRotation("rot", theta + 90 + 2, 0, 0);
+      TGeoRotation* rot = new TGeoRotation("rot", theta + 90 + 3, 0, 0);
       trans->SetRotation(rot);
       trans->SetTranslation(mInnerRadius * std::cos(2. * TMath::Pi() * iStave / nStaves), mInnerRadius * std::sin(2 * TMath::Pi() * iStave / nStaves), 0);
 
-      LOGP(info, "Inserting {} in {} ", sensVol->GetName(), chipVol->GetName());
-      chipVol->AddNode(sensVol, 1, nullptr);
+      LOGP(info, "Inserting {} in {} ", staveVol->GetName(), layerVol->GetName());
+      layerVol->AddNode(staveVol, iStave, trans);
+    }
+  } else if (mLayout == kStaggered) {
+    // Compute the number of staves
+    double width = mModuleWidth * 2; // Each stave has two modules (based on the LOI design)
+    int nStaves = (int)std::ceil(mInnerRadius * 2 * TMath::Pi() / width);
+    nStaves += nStaves % 2; // Require an even number of staves
 
-      LOGP(info, "Inserting {} in {} ", chipVol->GetName(), staveVol->GetName());
-      staveVol->AddNode(chipVol, 1, nullptr);
+    // Compute the size of the overlap region
+    double theta = 2 * TMath::Pi() / nStaves;
+    double theta1 = std::atan(width / 2 / mInnerRadius);
+    double st = std::sin(theta);
+    double ct = std::cos(theta);
+    double theta2 = std::atan((mInnerRadius * st - width / 2 * ct) / (mInnerRadius * ct + width / 2 * st));
+    double overlap = (theta1 - theta2) * mInnerRadius;
+    LOGP(info, "Creating a layer with {} staves and {} mm overlap", nStaves, overlap * 10);
+
+    for (int iStave = 0; iStave < nStaves; iStave++) {
+      TGeoVolume* staveVol = createStave("staggered");
+
+      // Put the staves in the correct position and orientation
+      TGeoCombiTrans* trans = new TGeoCombiTrans();
+      double theta = 360. * iStave / nStaves;
+      TGeoRotation* rot = new TGeoRotation("rot", theta + 90, 0, 0);
+      trans->SetRotation(rot);
+      trans->SetTranslation(mInnerRadius * std::cos(2. * TMath::Pi() * iStave / nStaves), mInnerRadius * std::sin(2 * TMath::Pi() * iStave / nStaves), 0);
 
       LOGP(info, "Inserting {} in {} ", staveVol->GetName(), layerVol->GetName());
       layerVol->AddNode(staveVol, iStave, trans);