Abstract: Receiver position error is known to degrade the passive source localization accuracy significantly. To deal with this problem, a new time difference of arrival based closed-form algorithm using multiple receivers with position errors is introduced, which exploits the multidimensional scaling (MDS) analysis. The linear equations related to the target position are constructed. The relation between the equation errors and the TDOA as well as the receiver position measurement errors is deduced. The weighted LS method is used to solve the target position, in which the weighting matrix includes the statistical character of the measurement errors. Simulation demonstrates that the proposed method has unbiasedness for small measurement errors. It can also achieves an accuracy close to the Cramer-Rao low bound and is more robust to larger errors than the method by Ho K C.