A novel non-negative matrix factorization (NMF) based subband decomposition in frequency spatial domain for acoustic source localization using a microphone array is introduced. The proposed method decomposes source and noise subband and emphasises source dominant frequency bins for more accurate source representation. By employing NMF, delay basis vectors and their subband information in frequency spatial domain for each frame is extracted. The proposed algorithm is evaluated in both simulated noise and real noise with a speech corpus database. Experimental results clearly indicate that the algorithm performs more accurately than other conventional algorithms under both reverberant and noisy acoustic environments.