The problem addressed is source localization via time-difference-of-arrival estimation in a multipath channel. Solving this localization problem typically implies cross-correlating the noisy signals received at pairs of sensors deployed within reception range of the source. Correlation-based localization is severely degraded by the presence of multipath. The proposed method exploits the sparsity of the multipath channel for estimation of the line-of-sight component. The time-delay estimation problem is formulated as an ℓ1-regularization problem, where the ℓ1-norm is used as a channel sparsity constraint. The proposed method requires knowledge of the pulse shape of the transmitted signal, but it is blind in the sense that information on the specific transmitted symbols is not required at the sensors. Simulation results show that the proposed method delivers higher accuracy and robustness to noise compared to conventional or even super-resolution MUSIC time-difference-of-arrival source localization methods.