<p>This paper discusses a novel disturbance observer designed as an estimator to determine the rotor speed of an induction motor. This observer is a solution to obtain a simple structure with a small number of compact observer gains. Furthermore, the adaptation law is no longer required to estimate induction motor speed values. This is a machine model-based computation method that uses a stationary reference frame. The nonlinearity problem is solved using an additional state vector in the observer model, which is known as an extended state observer. This approach easily and systematically determines the observer gain by applying the linear quadratic regulator (LQR) method, thereby avoiding time-consuming trial errors. The proposed observer, which was presented in both continuous and discrete forms, was tested using a sensorless V/f- controlled induction motor. The simulation results show that the proposed observer can accurately estimate all states, namely, the rotor flux and stator current; therefore, the proposed estimator provides the speed and electromagnetic torque for a wide operational range of speeds and load torques. It was also shown that the proposed observer was robust to noise and uncertainty in induction motor parameters.</p>