We propose a method for object localization in fluorescent tomography (FT) in the presence of a highly heterogeneous background. Existing approaches typically assume a homogeneous background distribution; thus, they are incapable of accurately accounting for the more general case of an unconstrained, possibly heterogeneous, background. The proposed method iteratively solves the inverse problem over a solution space partitioned into a background subspace and an object subspace to simultaneously estimate the background and localize the target fluorescent objects. Simulation results of this algorithm applied to continuous-wave FT demonstrate effective localization of target objects in the presence of highly heterogeneous background distributions.