Reverberation is well-known to have a detrimental impact on many localization methods for audio sources. We address this problem by imposing a model for the early reflections as well as a model for the audio source itself. Using these models, we propose two iterative localization methods that estimate the direction-of-arrival (DOA) of both the direct path of the audio source and the early reflections. In these methods, the contribution of the early reflections is essentially subtracted from the signal observations before localization of the direct path component, which may reduce the estimation bias. Our simulation results show that we can estimate the DOA of the desired signal more accurately with this procedure compared to state-of-the-art estimator in both synthetic and real data experiments with reverberation.