The vehicle Electronic Stability Program (ESP) can effectively improve the vehicle stability under extreme driving condition. However, traditional Direct Yaw Control (DYC) does not consider the adhesive limitation of tire forces. In order to overcome this shortage, a novel ESP algorithm was proposed based on Tire Dynamic Force Estimation (TDE) in this paper. Combined with Active Front Steering (AFS), this algorithm can make the maximum use of available tire forces. Based on multiple variables regression algorithm and polynomial fitting, a TDE controller was designed to obtain the tire adhesive boundary and the upper limit of optimal dynamic slip ratio. Based on fuzzy logic algorithm, an AFS controller was designed to compensate the insufficient yaw moment caused by adhesive forces limitation. This developed algorithm was verified through simulations, and the results show that the proposed novel ESP can significantly enhance the cornering stability by collaborative control with the AFS. Meanwhile, the proposed algorithm can significantly reduce active braking force of the wheels and alleviate undesired impact on the vehicle longitudinal speed.