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This paper presents an inverter control method based on Diagonal Recurrent Neural Network (DRNN) for phase power balancing of diesel generator - battery hybrid system. Symmetrical sequence is used to extract the unbalance current and voltage of the diesel generator. The DRNN regulates errors between the reference signal and the symmetrical sequence decomposition. After re-composition process, the signal is then fed to four-leg inverter, which is connected in parallel to the diesel generator. The inverter regulates current and voltage of the system toward a balanced condition. Simulation results show that the DRNN system reduces unbalanced phase current from 46% to 12%, and voltage from 6.2% to 3.0%.