In this article, a new method for determination of elastoplastic properties from an indentation loading curve is proposed. Mathematical model, based on deformation theory, leads to quasi-static elastoplastic contact problem, given by the monotonically increasing values i > 0 of the indentation depth. The identification problem is formulated as an inverse problem of determining the stress-strain curve i ¼ i ðe i Þ from an experimentally given indentation curve P ¼ PðÞ. The inversion method is based on the parameterization of the stress-strain curve, according to the discrete values of the indentation depth, and uses only a priori information as monotonicity of the unknown function i ¼ i ðe i Þ. It is shown that the ill-conditionedness of the identification problems depends on the state discretization parameter Áe i . An algorithm of optimal selection of state discretization parameters is proposed as a new regularization scheme. Numerical examples with noise free and noisy data illustrate applicability and high accuracy of the proposed method.