A method for estimating a parameter for low bit rate stereo transmission that includes deriving estimate of any time delay between left and right audio channels in a multi-channel signal from a time delay subsystem. A cross-correlation between the left and right audio channels in the time delay subsystem is employed. Thereafter a normalized cross-correlation within an inter-channel intensity difference (IID) processor is employed before deriving estimate of panning gains for the left and right audio channels from the IID processor.