This paper presents a novel finite element method (FEM) of optimization for driving frequency in magneto-mechanical systems using contactless magnetoelastic torque sensors. The optimization technique is based on the generalization of the axial and shear stress dependence of the magnetic permeability tensor. This generalization creates a new possibility for the determination of the torque dependence of a permeability tensor based on measurements of the axial stress on the magnetization curve. Such a possibility of quantitative description of torque dependence of a magnetic permeability tensor has never before been presented. Results from the FEM-based modeling method were validated against a real magnetoelastic torque sensor. The sensitivity characteristics of the model and the real sensor show a maximum using a driving current of similar frequency. Consequently, the proposed method demonstrates the novel possibility of optimizing magnetoelastic sensors for automotive and industrial applications.