A method and an arrangement are disclosed for identifying one or more parameters of an induction machine when the induction machine is connected to the output phases of a voltage source inverter and the induction machine is in standstill state. The method can include a first phase for magnetizing the machine by providing a first DC magnetization current until the induction machine reaches steady state, the current reference of the inverter having a first value (idc—ref1). A first maximum value (imz—max) of the stator current (isd) is measured during a zero voltage vector. In a second phase, the machine is magnetized by providing a second DC magnetization current, the current reference having a second value (idc—ref2) which is higher than the first reference (idc—ref1). A second maximum value of (isdz—max) the stator current is measured during a zero voltage vector, and a parameter of the induction machine is estimated when the measured first and second maximum values are equal.