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A main challenge within inertial navigation systems involves attitude determination, which refers to the process of estimating the angles that define orientations. A new algorithm is presented to estimate a reliable and proper model for a low‐cost attitude and heading reference system (AHRS), while also, including long‐term global navigation satellite system (GNSS) outages with various dynamical manoeuvres. In the proposed approach, the initial AHRS model is continuously refined at each time step through the incorporation of complementary terms using a new prediction method. These complementary terms are determined using attitude information from the accelerometers output and the GNSS as reference systems. The proposed estimation technique undergoes mathematical analysis to ascertain stochastic stability and is further assessed through real‐world aerial experimental tests conducted with hardware‐in‐the‐loop mechanisation. The obtained results demonstrate a significant enhancement in the reliability and accuracy of the AHRS through the proposed estimation algorithm, even under GNSS blockages. The comparative results highlight the higher performance of the suggested data fusion scheme in providing a reliable and accurate model for the AHRS in normal conditions and assisting a powerful neural network‐based algorithm to provide reliable heading information even during long‐term GNSS outages under dynamical manoeuvres. [ABSTRACT FROM AUTHOR]