In electric drive systems, one of the most common faults is related to measurement equipment, including current sensors (CSs). As information about the stator current is crucial to ensure precise control of AC drives, such a fault significantly affects the quality and security of the entire system. For this reason, a modified extended Kalman filter (EKF) has been presented in this paper as an algorithmic solution to restore stator current in the event of CS failure. In order to minimize the impact of rotor and stator resistance variations on the quality of the estimation, the proposed model includes an estimation of the general coefficient of their changes. In contrast to solutions known in the literature, the presented model considers changes in both resistances in the form of a single coefficient. This approach allows us to maintain a low order of the estimator (fifth) and thus minimize the tendency to system instability and decrease computation burden. Extensive simulation tests have shown a significant improvement in the accuracy of stator current estimation under both motor and regenerating modes, a wide speed range (1–100%), and changes in motor parameters.