A nonlinear discrete-time neural observer for the state estimation of a discrete-time induction motor model, in presence of external and internal uncertainties is presented. The observer is based on a discrete-time recurrent high order neural network (RHONN) trained with an extended Kalman filter (EKF)-based algorithm. This observer estimates the state of the unknown discrete-time nonlinear system, using a parallel configuration. The paper also includes the stability proof on the basis of the Lyapunov approach. To illustrate the applicability real-time results are included.