A new velocity model based on dynamic cluster was proposed in this paper. During the process of iteration, the sensors can be formed a cluster according to the velocity similitude degree. Based on the assumption that the speeds from source to each sensor in the same cluster are equal, the corresponding objective function was proposed to solve the source location, which didn’t include the velocity parameter. It not only avoided the error from field measurement and the inversion, but also appropriated for the actual situation that the speeds from every source to different sensors are different. By analyzing 24 different cases, the positioning accuracy based on the velocity model proposed in this paper was verified to be preferable and stable, no matter the source is within the region of the sensor’s array or not. Even for the cases of different velocity variation ranges, the velocity model was still reliable.