This paper presents a new approach for stable tracking of non-holonomic wheeled mobile robot using PID controller. The major objective of the paper is to propose a control rule to find out reasonable target linear and rotational velocities of the mobile robot. The method requires the information about the position (Cartesian space and orientation) of the mobile robot which can be obtained by any kind of positioning system. In the approach, the mobile robot, including the actuator dynamics is identified by a linear model using recursive least square method. The identified model is then used to design the PID controller to set the target linear and rotational velocities. Simulation and experimental studies are presented to validate the theoretical findings.