In this paper, monaural ambient component extraction algorithm based on nonnegative matrix factorization (NMF) is described. The ambience component extraction algorithm in this paper is developed for audio upmixing system; Recent researches have shown that they can enhance listener envelopment if the extracted ambient signal is applied into the multichannel audio upmixing system. However, the conventional method stores all of the audio signal and processes all at once, so it cannot be applied to streaming system and digital signal processor (DSP) system. In this paper, the ambient component extraction algorithm based on on-line nonnegative matrix factorization is developed and evaluated to solve the problem. As a result of analysis of the processed signal with spectral flatness measures in the experiment, it was shown that the developed system can extract the ambient signal similarly with the conventional batch process system.