In this paper, we propose a cooperative localization method for moving source using time difference of arrival (TDOA) and frequency difference of arrival (FDOA) measurements. Research on cooperative localization of moving source is an important topic to solve the passive source localization problem in different fields, such as radar, sonar, navigation, wireless communications and so forth. We investigate the improvement in source estimation accuracy. In the cooperative localization structure, a cooperative localization method based on quasi-Newton (QN) approach and two-step weighted least-squares (TSWLS) method is designed. The research results prove that the source localization accuracy has been improved effectively by using cooperative localization method based on QN-TSWLS method.