A needle-tissue interaction model is an essential part of every needle insertion simulator. In this paper, a new experimental method for the modeling of needle-tissue interaction is presented. The method consists of measuring needle and tissue displacements with ultrasound, measuring needle base forces, and using a deformation simulation model to identify the parameters of a needle-tissue interaction model. The feasibility of this non-invasive approach was demonstrated in an experiment in which a brachytherapy needle was inserted into a prostate phantom. Ultrasound radio-frequency data and the time-domain cross-correlation method, often used in ultrasound elastography, were used to generate the tissue displacement field during needle insertion. A three-parameter force density model was assumed for the needle-tissue interaction. With the needle displacement, tissue displacement and needle base forces as input data, finite element simulations were carried out to adjust the model parameters to achieve a good fit between simulated and measured data.