In this paper, the torque error signal and the amplitude of the stator flux reference vector are delivered to a PI predictive controller. The predictive controller also uses information on the amplitude and position of the actual stator flux vector and measured stator currents to determine the voltage command vector for space vector modulation inverter, a conventional PI speed controller is used to generate the torque reference signal. A second order sliding mode observer issued to perform accurate tracking of the motor speed. Soft computing technique, Fuzzy logic, is applied in this paper for the estimation of the observer parameters. Simulation results show the effectivness of the proposed control method.