This paper describes a combination of direct torque control (DTC) and space vector modulation (SVM) for an adjustable speed sensorless induction motor (IM) drive. The motor drive is supplied by a two-level SVPWM inverter. The inverter reference voltage is obtained based on input-output feedback linearization control, using the IM model in the stator D-Q axes reference frame with stator current and flux vectors components as state variables. Moreover, a robust full-order adaptive stator flux observer is designed for a speed sensorless DTC-SVM system and a new speed-adaptive law is given. By designing the observer gain matrix based on state feedback H∞ control theory, the stability and robustness of the observer systems is ensured. Finally, the effectiveness and validity of the proposed control approach is verified by simulation results.