A new nonparametric method, based on the smooth weighted-minimum-norm (WMN) focal underdetermined-system solver (FOCUSS), for electrical cerebral activity localization using electroencephalography measurements is proposed. This method iteratively adjusts the spatial sources by reducing the size of the lead-field and the weighting matrix. Thus, an enhancement of source localization is obtained, as well as a reduction of the computational complexity. The performance of the proposed method, in terms of localization errors, robustness, and computation time, is compared with the WMN-FOCUSS and nonshrinking smooth WMN-FOCUSS methods as well as with standard generalized inverse methods (unweighted minimum norm, WMN, and FOCUSS). Simulation results for single-source localization confirm the effectiveness and robustness of the proposed method with respect to the reconstruction accuracy of a simulated single dipole.