Abstract: A system and method for steering a rotating downhole drilling tool is provided. The downhole tool includes an inclinometer having directional accelerometers capable of measuring drilling parameters, such as angular position and centripetal acceleration, of the downhole tool. An offset accelerometer is further included for determining centripetal acceleration of the downhole tool. Collar rotation rate and the toolface may be determined from the drilling parameters. Filters, analog to digital converters and processor devices may be used to process the signals and send commands in response thereto for steering the tool.