This paper presents a new velocity estimation strategy of a non-salient permanent magnet synchronous motor (PMSM) drive without high frequency signal injection or special PWM pattern. This approach is based on the d-axis current regulator output voltage of the drive system that has the information of rotor position error. The rotor velocity can be estimated through a rotor position tracking PI controller that controls the position error to zero. For zero and low speed operation, PI controller gains of rotor position tracking controller have a variable structure according to the estimated rotor velocity. In order to boost the bandwidth of PI controller around zero speed, a loop recovery technique is applied to the control system. The proposed method only requires the flux linkage of permanent magnet and is insensitive to the parameter estimation error and variation. The designers can easily determine the possible operating range with a desired bandwidth and perform the vector control even at low speeds. The experimental results show the satisfactory operation of the proposed sensorless algorithm under rated load conditions.