Brookhaven National Laboratory (BNL) is working with FLIR System Inc., the manufacturer of the nanoRAIDER, to design a handheld device based on a position-sensitive virtual Frisch-grid (VFG) Cadmium-Zinc-Telluride (CdZnTe or CZT) detector array (with 1% or better energy resolution). The new device called nanoRAIDER VFG will be an improvement to the current nanoRAIDER, which is a compact gamma-ray detection instrument manufactured by FLIR Systems Inc. that employs relatively lower-performing CZT hemispheric detectors (i.e., 3%-FWHM CZT detectors). The nanoRAIDER will significantly improve the accuracy while maintaining similar efficiency, as compared to the nanoRAIDER, for in-field analysis of nuclear materials and detection of undeclared activities during inspections conducted by the International Atomic Energy Agency (IAEA). Since the nanoRAIDER is currently used by the IAEA as part of its Complementary Access toolkit, a relatively quick acceptance of the nanoRAIDER VFG for safeguards is anticipated. The nanoRAIDER VFG will help address several items listed in the IAEA’s Long-Term R&D Plan that could enhance the abilities to detect undeclared nuclear material and activities.