Pseudo-measurement filter is designed to alleviate the bias problems of the extended Kalman filter. The filter uses the coordinate transformation from radar Cartesian coordinate to line of sight Cartesian coordinate using angular measurements. The paper extends the conventional pseudo-measurement filter model including range, elevation and azimuth information to a model that also utilizes range rate measurement. The analytical formulation of pseudo-measurement model with range rate is derived, then the pseudo-measurement filter is constructed using modified gain concept. The modified gain is introduced to reduce the bias caused by measurement dependent Kalman gain. To validate the performance, the filtering simulation with simple target is conducted to check the performance. Monte Carlo simulations are carried out to compare the performance of modified gain pseudo-measurement filter, debiased converted measurement Kalman filter and extended Kalman filter.