Surface electromyography (sEMG)-based pattern recognition studies have been widely used to improve the classification accuracy of upper limb gestures. Information extracted from multiple sensors of the sEMG recording sites can be used as inputs to control powered upper limb prostheses. However, usage of multiple EMG sensors on the prosthetic hand is not practical and makes it difficult for amputees due to electrode shift/movement, and often amputees feel discomfort in wearing sEMG sensor array. Instead, using fewer numbers of sensors would greatly improve the controllability of prosthetic devices and it would add dexterity and flexibility in their operation. In this paper, we propose a novel myoelectric control technique for identification of various gestures using the minimum number of sensors based on independent component analysis (ICA) and Icasso clustering. The proposed method is a model-based approach where a combination of source separation and Icasso clustering was utilized to improve the classification performance of independent finger movements for transradial amputee subjects. Two sEMG sensor combinations were investigated based on the muscle morphology and Icasso clustering and compared to Sequential Forward Selection (SFS) and greedy search algorithm. The performance of the proposed method has been validated with five transradial amputees, which reports a higher classification accuracy ( >95%). The outcome of this study encourages possible extension of the proposed approach to real time prosthetic applications.