Abstract. In [2], [3], Argyros introduced a new derivative-free quadratically convergent method for solving a nonlinear equation in Banach space. In this paper, we extend this method to generalized equations in order to approximate a locally unique solution. The method uses only divided differences operators of order one. Under some Lipschitz-type conditions on the first and second order divided differences operators and Lipschitz-like property of set-valued maps, an existence-convergence theorem and a radius of convergence are obtained. Our method has the following advantages: we extend the applicability of this method than all the previous ones [2]-[5], [7], and we do not need to evaluate any Fréchet derivative. We provide also an improvement on the radius of convergence for our algorithm, under some center-condition and less computational cost. Numerical examples are also provided.