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A new method of measurement of distortion product otoacoustic emission (DPOAE) signal level based on a recently introduced nonlinear adaptive method of extraction of nonstationary sinusoids is presented. Essentially, three units of such an algorithm are employed to extract and measure the two stimuli and the DPOAE signal. Each unit has the capability of locking on a specified sinusoidal component of the input signal and tracking its variations over time. Performance of the proposed method is demonstrated with the aid of computer simulations and is verified in laboratory using recorded clinical data. Comparison is made between the proposed technique and existing methods. The proposed method features structural simplicity which renders it particularly attractive for implementation on both software and hardware platforms. It offers a high degree of immunity with regard to background noise and parameter variations. Compared to conventional methods, the proposed method offers a shorter measurement time which is of significant value in clinical examinations.