AbstractIn this contribution an algorithm for parameter identification of geometrically linear Terzaghi–Biot‐type fluid‐saturated porous media is proposed, in which non‐uniform distributions of the state variables such as stresses, strains and fluid pore pressure are taken into account. To this end a least‐squares functional consisting of experimental data and simulated data is minimized, whereby the latter are obtained with the finite element method. This strategy allows parameter identification based on in situ experiments. In order to improve the efficiency of the minimization process, a gradient‐based optimization algorithm is applied, and therefore the corresponding sensitivity analysis for the coupled two‐phase problem is described in a systematic manner. For illustrative purpose, the performance of the algorithm is demonstrated for a slope stability problem, in which a quadratic Drucker–Prager plasticity model for the solid and a linear Darcy law for the fluid are combined. Copyright © 2001 John Wiley & Sons, Ltd.