The paper proposes a modified version of the model reference adaptive system (MRAS) based speed estimator, whose outputs of the reference and the adjustable model are rotor flux space vectors. The estimator is modified in such a way that the variation in the instantaneous level of the main flux saturation during operation in the field weakening is recognized and properly compensated at all times. The speed estimation scheme is equally applicable to both vector controlled and direct torque controlled induction machines, since it operates in the stationary reference frame and requires measurement of only stator voltages and currents. Verification of the proposed scheme is provided by simulation and by experimentation on an indirect feedforward rotor flux oriented induction machine for speed references of up to twice the base speed.