An indirect adaptive controller for an input/output dynamical system is proposed. The approach is based on the nominal input/state/output representation first proposed in [\textit{R. Gessing}, ``State space and internal models in discrete-time LQ regulator design'', Proceedings of the 7th Mediterranean Conference on Control and Automation (MED 99), Haifa, Israel, June 28-30, 282-292 (1999)], but no citation of this article is given in the paper. The control part of the adaptive control scheme is based on a modified LQ control law. The conflict between identification and control (which usually appears in adaptive systems with current identification) is avoided by adding a time-varying gain to the certainty-equivalent control law.