The performance of a stator current-based model reference adaptive systems (MRAS) speed estimator for sensorless induction motor drives is investigated in this study. The measured stator currents are used as a reference model for the MRAS observer to avoid the use of a pure integrator. A two-layer, online-trained neural network stator current observer is used as the adaptive model for the MRAS estimator which requires the rotor flux information. This can be obtained from the voltage or current models, but instability and dc drift can downgrade the overall observer performance. To overcome these problems of rotor flux estimation, an off-line trained multilayer feed-forward neural network is proposed here as a rotor flux observer. Hence, two networks are employed: the first is online trained for stator current estimation and the second is off-line trained for rotor flux estimation. Sensorless operation for the proposed MRAS scheme using current model and neural network rotor flux observers are investigated based on a set of experimental tests in the low-speed region. Using a neural network rotor flux observer to replace the current model is shown to solve the stability problem in the low-speed regenerating mode of operation.