Acoustic signal is crucial for the autonomous navigation of underwater vehicles. For this purpose, this paper presents a method of acoustic source localization. The proposed method is based on the probabilistic estimation of time delay of acoustic signals received by two hydrophones. Using Bayesian update process, the proposed method can provide reliable estimation of direction angle of the acoustic source. The acquired direction information is used to estimate the location of the acoustic source. By accumulating direction information from various vehicle locations, the acoustic source localization is achieved using extended Kalman filter. The proposed method can provide a reliable estimation of the direction and location of the acoustic source, even under for a noisy acoustic signal. Experimental results demonstrate the performance of the proposed acoustic source localization method in a real sea environment.