The technique for estimating the parameters of multiple waves provides a convenient tool for analysis of multiple wave-fields and eventually for actual applications to mobile communications. Several algorithms have been proposed for those purposes. However, the best tactics to resolve multiple wave-fields are still imperfectly understood at present. This paper proposes a new method for estimating the angles and power levels of arrival waves based on the extended Kalman filter. A space-variable model which we call a spatial state equation is derived using array element locations and incident angles. It has been shown that by means of the model, the estimation of incident waves can be transformed into the problem of parameter identification in linear system which can be carried out by the extended Kalman filter conveniently. The algorithm is initiated directly by the signal received at each array element. The detailed procedure of an extended Kalman filter approach is given in the paper. The performance of the proposed approach is examined by a simulation study with two signals model. The simulation results show a good estimate performance, even in the case that two waves arrive from close directions.