The convergence rate of the power inversion (PI) algorithm is quite sensitive to the power of the interference with the used fixed parameters in the PI algorithm leading to degradation of its ability to handle interference. This paper presents a normalized PI algorithm that traces the stochastic characteristics of the interference. The algorithm adaptively adjusts the recursive step size to determine the constrained optimized parameters for the Iowpass filter. Simulations show that the normalized PI algorithm achieves faster con-vergence and produces deeper nulls. The algorithm makes GPS receivers more robust in environments with large variations in the interference strength.