The main problems faced by a dynamic model within a Kalman filter occur when the system experiences unexpected dynamic conditions, a change in data acquisition rate, or when the dynamics of the system are non-linear. To minimize the errors produced from dynamic modelling in unusual conditions, an extended dynamic model is developed in this paper, and its usefulness demonstrated through comparison of the performance of a Kalman filter's response to simulated data with a standard dynamic model and the extended dynamic model. The results show that, in use, the proposed extended dynamic model is superior to a standard dynamic model, due mainly to its ability to adapt to a wider range of dynamic conditions, which in turn ensures the optimization of the Kalman filter and the consequent generation of reliable positioning results.