This paper suggests novel sensorless speed estimation for an induction motor (IM) based on a stator current model reference adaptive system (IS-MRAS) scheme. The IS-MRAS scheme uses the error between the reference and estimated stator current vectors and the rotor speed. Observing rotor flux and the speed estimating using the conventional MRAS technique is confronted with certain problems related to the presence of the pure integrator and the rotor resistance causing offsets at low speeds, as proved by the most recent publications. These offsets are disastrous in sensorless control since these signals are no longer suitable to calculate of park angle (θs). This paper discusses the new MRAS approach (IS-MRAS) for on-line identification of the rotor resistance suitable for compensating offsets and solving problems of ordinary MRAS at low speed. This new MRAS approach used to estimate the components of the rotor flux and rotor speed without using the voltage model with on-line Setting parameters (Kp, K1) based on Type-2 fuzzy Logic. The results of the simulation and the experimental results are presented and show the effectiveness of the proposed technique.