An integration system with multi-measurement sets can be realized via combined application of a centralized and federated Kalman filter. It is difficult for the centralized Kalman filter to remove a failed sensor in comparison with the federated Kalman filter. All varieties of Kalman filters monitor innovation sequence (residual) for detection and isolation of a failed sensor. The innovation sequence, which is selected as an indicator of real time estimation error plays an important role in adaptive mechanism design. In this study, the centralized Kalman filter with adaptive measurement fusion is introduced by means of innovation sequence. The objectives of adaptive measurement fusion are automatic isolation and recovery of some sensor failures as well as inherent monitoring capability. The proposed adaptive filter is applied to the GPS/SDINS integration system with an additional sensor. Simulation studies attest that the proposed adaptive scheme is effective for isolation and recovery of immediate sensor failures.