An electrically sensing and stimulating outer sheath for ensuring accurate surgical placement of a microsensor or a microstimulator near a nerve in living tissue is disclosed. The electrically sensing outer sheath may also be used to verify the function of the microstimulator or microsensor during surgical placement but before the outer sheath is removed. In the event that the microstimulator is not optimally placed near the nerve, or if the microstimulator is malfunctioning, this can be determined prior to removal of the outer sheath, thus reducing the possibility of nerve or tissue damage that might be incurred during a separate operation to remove the microstimulator.
