A method and an arrangement are provided for identifying 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 includes providing a DC magnetization current (idc—magn) to the induction machine with the inverter, controlling the power semiconductors of the inverter to an off-state, controlling all the output phases of the inverter to the same potential to provide a zero voltage vector, measuring the stator current (isd) during the zero voltage vector, and determining parameters of the induction machine from the stator current (isd) measured during the zero voltage vector.