A method of fault phase selection and fault type determination in electric power lines, making use of a protection relay having means for fault detection and computer means for signal and data processing, using a fault inception detection and an estimation of fault phase current signals, pre-fault current signals and zero-sequence current in order to receive the absolute value of incremental current signals (I AB, I BC, I CA) and their maximum value (I max) from which real value indicators for phase to phase faults ( S A, S B, S C), real value indicators for 3-phase fault ( S 3 A, S 3B, S 3 C) and a real value indicator for ground fault ( S G) are determined, the method being characterized by following steps: - calculating the maximum of the value of all fault type indicators (F flt) according to the formula: F max = max F flt, where the index flt is an integer number from 1 to 10 and means one specific type of all type faults, - determination of the fault type as one of the indicator ( F flt) having the maximal value, which at the same time determines the fault type on the base that the index (flt) means the type of fault, where if: flt = 1 then there is a phase A to ground G fault, flt = 2 then there is a phase B to ground G fault, flt = 3 then there is a phase C to ground G fault, flt = 4 then there is a phase A to phase B fault, flt = 5 then there is a phase B to phase C fault, flt = 6 then there is a phase C to phase A fault, flt = 7 then there is a phase A to phase B and to ground G fault, flt = 8 then there is a phase B to phase C and to ground G fault, flt = 9 then there is a phase C to phase A and to ground G fault, flt = 10 then there is a phase A to phase B to phase C fault, - presentation the of real fault type indicator (F max) in the protective relay or in the means connected to the protective relay. - calculating the maximum of the value of all fault type indicators (F flt) according to the formula: F max = max F flt, where the index flt is an integer number from 1 to 10 and means one specific type of all type faults, - determination of the fault type as one of the indicator ( F flt) having the maximal value, which at the same time determines the fault type on the base that the index (flt) means the type of fault, where if: flt = 1 then there is a phase A to ground G fault, flt = 2 then there is a phase B to ground G fault, flt = 3 then there is a phase C to ground G fault, flt = 4 then there is a phase A to phase B fault, flt = 5 then there is a phase B to phase C fault, flt = 6 then there is a phase C to phase A fault, flt = 7 then there is a phase A to phase B and to ground G fault, flt = 8 then there is a phase B to phase C and to ground G fault, flt = 9 then there is a phase C to phase A and to ground G fault, flt = 10 then there is a phase A to phase B to phase C fault, flt = 1 then there is a phase A to ground G fault, flt = 2 then there is a phase B to ground G fault, flt = 3 then there is a phase C to ground G fault, flt = 4 then there is a phase A to phase B fault, flt = 5 then there is a phase B to phase C fault, flt = 6 then there is a phase C to phase A fault, flt = 7 then there is a phase A to phase B and to ground G fault, flt = 8 then there is a phase B to phase C and to ground G fault, flt = 9 then there is a phase C to phase A and to ground G fault, flt = 10 then there is a phase A to phase B to phase C fault, - presentation the of real fault type indicator (F max) in the protective relay or in the means connected to the protective relay.