This paper proposes a new speed sensorless direct torque and flux controlled interior permanent magnet synchronous motor (IPMSM) drive. Closed-loop control of both the torque and stator flux linkage are achieved by using two proportional-integral (PI) controllers. The reference voltage vectors are generated by a SVM unit. The drive uses an adaptive sliding mode observer for joint stator flux and rotor speed estimation. Global asymptotic stability of the observer is achieved via Lyapunov analysis. At low speeds, the observer is combined with the high frequency signal injection technique for stable operation down to standstill. Hence, the sensorless drive is capable of exhibiting high dynamic and steady-state performances over a wide speed range. The operating range of the direct torque and flux controlled (DTFC) drive is extended into the high speed region by incorporating field weakening. Experimental results confirm the effectiveness of the proposed method.