Voltage source converters are widely used in the power system to enhance the power system performance. In the conventional converter control, the control system usually takes the voltage measured at the point where the converter is connected and calculates the reference voltage for the converter; with a modulation system the converter then produces the required 'average voltage'. In this paper, a novel flux modulation scheme, combined with the deadbeat current control strategy, is proposed. The current controller is capable of controlling both positive and negative sequence currents. With flux modulation, the control system measures the bus flux and commands the converter to generate the required flux. The simulation and experimental results presented show a good performance of this converter control system.