A novel approximate maximum likelihood algorithm is proposed for estimating
the time difference of arrival between signals received at two spatially s
eparated sensors. Prior to cross correlation, one of the channel outputs is
optimally weighted at different frequency bands with the use of an orthogo
nal wavelet transform. It composes an array of multirate filters and is a t
ime-domain implementation of the generalized cross correlation method. Howe
ver, it does not suffer from the performance degradation due to the errors
inherent in spectral estimation obtained from finite length data and is com
putationally efficient. A simple decision rule is also provided to automati
cally determine the requisite levels of wavelet decomposition. The effectiv
eness of the method is demonstrated by comparing, with the direct cross cor
relator, the Eckart processor and the Cramer-Rao lower bound (CRLB) for dif
ferent noise conditions and wavelet filter lengths.