To address the negative DC-link current generated in two-level inverters during single-sensor phase current reconstruction using the traditional measurement vector method, this paper first analyzes the relationship between PWM pulses and phase current angles corresponding to different voltage vectors. By defining source-type and sink-type voltage vectors, the mechanism behind the generation of negative DC-link current in the traditional measurement vector method and its detrimental effects are revealed. Subsequently, by adjusting the pulse widths of two-phase PWM signals and dynamically inserting source-type and sink-type voltage vectors in unobservable regions, a hybrid PWM phase current reconstruction strategy is proposed, which effectively eliminates the negative DC-link current. Finally, experimental results under various operating conditions demonstrate that the proposed method effectively eliminates negative DC-link current, reduces DC-link voltage fluctuations, and minimizes the impact of zero-drift on reconstruction accuracy. The total harmonic distortion of the phase current is below 3.24%, while the reconstruction error is less than 3.45%.