In this paper, we have proposed a modified version of the two-stage separated virtual steering vector-based algorithm. Our proposed algorithm has solved the problem encountered in the two-stage separated virtual steering vector-based algorithm (SVSV) without significant increase in the computational load. SVSV could not resolve the multiple two-dimensional (2D) frequency components having equivalent 2 1 i i f f − , ( 1, 2,..., w i I = ). Computer simulations are given to demonstrate the effectiveness of the proposed algorithm over SVSV algorithm. Noise performance of the modified SVSV is also analyzed through Monte Carlos simulations.