There is provided a method of manufacturing a field effect transistor (FET) that includes the steps of forming a gate structure on a semiconductor substrate, and forming a recess in the substrate and embedding a second semiconductor material in the recess. The gate structure includes a gate dielectric layer, conductive layers and an insulating layer. Forming said gate structure includes a step of recessing the conductive layer in the gate structure, and the steps of recessing the conductive layer and forming the recess in the substrate are performed in a single step. There is also provided a FET device.