Considering the uncertainty of the electrical axis for two‐dimensional audo‐magnetotelluric (AMT) data processing, an AMT inversion method with the Central impedance tensor was presented. First, we present a calculation expression of the Central impedance tensor in AMT, which can be considered as the arithmetic mean of TE‐polarization mode and TM‐polarization mode in the two‐dimensional geo‐electrical model. Second, a least‐squares iterative inversion algorithm is established, based on a smoothness‐constrained model, and an improved L‐curve method is adopted to determine the best regularization parameters. We then test the above inversion method with synthetic data and field data. The test results show that this two‐dimensional AMT inversion scheme for the responses of Central impedance is effective and can reconstruct reasonable two‐dimensional subsurface resistivity structures. We conclude that the Central impedance tensor is a useful tool for two‐dimensional inversion of AMT data.