Dynamic line rating has emerged as a solution for reducing congestion in overhead lines, allowing the optimization of power systems assets. This technique is based on direct and/or indirect monitoring of conductor temperature. Different devices and methods have been developed to sense conductor temperature in critical spans. In this work, an algorithm based on WLS is proposed to estimate temperature in all ruling spans of an overhead line. This algorithm uses indirect measurements – i.e. weather reports and/or downscaling nowcasting models as inputs as well as direct measurements of mechanical tension, sag and/or conductor temperature. The algorithm has been tested using typical atmospheric conditions in Iceland along with an overhead line's real design, showing robustness, efficiency and the ability to minimize error in measurements.