In this paper, we study the well-posedness of the solution of an optimal control problem related to a multi-parameters identification problem in degenerate parabolic equations. Problems of this type have important applications in several fields of applied science. Unlike other inverse coefficient problems for classical parabolic equations, the mathematical model discussed in the paper is degenerate on both lateral boundaries of the domain. Moreover, the status of the two unknown coefficients are different, namely that the reconstruction of the source term is mildly ill-posed, while the inverse initial value problem is severely ill-posed. On the basis of optimal control framework, the problem is transformed into an optimization problem. The existence of the minimizer is proved and the necessary conditions which must be satisfied by the minimizer are also established. Due to the difference between ill-posedness degrees of the two unknown coefficients, the extensively used conjugate theory for parabolic equations cannot be directly applied for our problem. By carefully analyzing the necessary conditions and the direct problem, the uniqueness, stability and convergence of the minimizer are obtained. The results obtained in the paper are interesting and useful, and can be extended to more general parabolic equations with degenerate coefficients.