This paper present a methodology to include magnetic saturation in the modeling of the induction machine. It permit that the induction machine will be analyzed under a nonlinear condition, where the inductances vary depending on the magnetizing current and that the dynamic equations of the machine would be expressed in a system of arbitrary reference. Also it is made with a non-linear processing that describe the nonlinear behavior of inductances i.e. the variation of the magnetic flux with respect to the magnetization current.