This paper describes a new direct field orientation (DFO) scheme based on a modified flux observer using measured stator voltages and currents. The proposed approach addresses the problem of torque control of speed sensorless drives at low-zero speed, where rapid speed changes do not occur and signal frequency can approach zero. The scheme can maintain field orientation and stable torque control with simultaneous resistance and speed tuning taking place. Simulations and locked rotor experiments with torque measurements are used for verification.