Space Vector Modulation (SVM) for direct matrix converter (DMC) with advanced features, such as elimination of high-frequency common-mode voltage and unity grid power factor is attracting increased research interest. However, disturbances on the grid side of matrix converter are directly transferred to the output load, due to no DC-link storage element. Consequently, THD of both output and input currents increases. In this paper, SVM is further extended to suppress disturbance propagation to the output. Using DSRF-PLL (Double Synchronous Reference Frame PLL) structure, positive and negative sequence component of grid voltage can be extracted quickly and accurately. Furthermore, proposed modulation technique eliminates the influence of negative sequence component, in the open loop manner without causing any additional delay. Simulation results are provided to verify the proposed method. It is concluded that proposed extended SVM can maintain balanced output currents and achieve sinusoidal input currents in the same time, even under unbalanced grid conditions.