In this paper, we have proposed a modified version of the two-stage separated virtual steering vector-based algorithm. Our proposed algorithm has solved the problem encountered in the two-stage separated virtual steering vector-based algorithm (SVSV) without significant increase in the computational load. SVSV could not resolve the multiple two-dimensional (2D) frequency components having equivalent ƒ i2 − ƒ i1 , (i=1,2,…,I w ). Computer simulations are given to demonstrate the effectiveness of the proposed algorithm over SVSV algorithm. Noise performance of the modified SVSV is also analyzed through Monte Carlos simulations.