Three-phase PWM rectifier can be controlled by direct and indirect current control schemes. The former requires at least two current sensors with high accuracy which increase the volume and cost of the system. In this paper, a new control strategy for PWM rectifier is proposed. The current feedback is obtained by current observer, so the current sensor is not needed in this method. The current loop only contains the active current control loop. As for reactive current, the control signal is generated according to the steady-state voltage relationship, which makes the reactive current to zero at steady-state. A thorough analysis of the current response of the proposed method is given, and the active damping strategy is introduced, which can improve the current dynamic response. Simulation shows that the new scheme obtains a good steady performance and dynamic response. This scheme has a low cost, high performance and simple structure, which is a novel PWM rectifier control strategy.