A storage element structure for phase change memory (PCM) cell and a method for forming such a structure are disclosed. The method of forming a storage element structure, comprises providing a multilayer stack comprising a chalcogenide layer (206), a metal cap layer (208), and a dielectric hard mask layer (210), depositing and patterning a photo resist layer (212) on top of the multilayer stack, etching the dielectric hard mask layer using the photo resist layer as etch mask, after the dielectric hard mask layer is etched, removing the photo resist layer before etching the chalcogenide, etching the chalcogenide layer using the dielectric hard mask layer as etch mask, depositing a spacer dielectric (214) over the multilayer stack and anisotropically etching the spacer dielectric to form sidewall spacers (216) for the multilayer stack.