A new method for joint Direction-of-Arrival (DOA) and sensor position estimation is introduced. The proposed method exploits the advantages of both higher-order-statistics (HOS) and second-order-statistics (SOS) with an iterative algorithm. The ambiguity problem in sensor position estimation is solved by observing source signals at least in two different frequencies. These frequencies should satisfy a certain condition which is presented in the paper. A new cost function is defined for the DOA and position estimation. The proposed method works even when the source signals are correlated contrary to the HOS approaches. The performance of the method approaches to the Cramer-Rao bound (CRB) for both DOA and position estimation.