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In this paper, a simple but accurate
method for increasing the accuracy of relative localization of wheeled mobile robots with indoor applications is introduced. In contrast to existing methods, the proposed localization algorithm not
only increases the accuracy of robot orientation, but also reduces the robot position error --that is essential for accomplishing object manipulation task with cooperative mobile robots. The proposed method benefits from combining the information of gyroscope, odometery and dead-reckoning of a passive wheel which is located between the active wheels. The information of passive wheel is compared with the dead-reckoning and gyroscope data to determine the roughness of ground or the wheel slippage. The experimental and simulation results show that, the proposed method is highly effective in reducing dead-reckoning errors even when the roughness of terrain is not negligible.