Cancer is a major public health problem worldwide, especially in developed countries.Early detection of the cancer can greatly increase both survival rates and quality of life for patients. A magnto-acoustic based method had been previously proposed for early tumor detection, in a minimal invasive procedure, using magnetic nanoparticles (MNPs). However, in order to accompany tumor identification with immediate treatment, a complementary tumor localization algorithm was needed. Therefore, our objective was to measure the acoustic signals generated by the MNP conjugated tumor in an optimal multi sensor array and estimate the 3D location of the tumor in real time. A Time Difference of Arrival (TDOA) based localization algorithm was developed, and implemented in computerized simulations on the breast tissue geometry. Tumor localization feasibility and the hyperbolic positioning algorithm performance were evaluated. Overall performance yielded localization with a median Euclidean distance of 2.8mm. Such performance indicates that tumor localization was estimated with high accuracy, and suggests that the combination of magneto-acoustic detection along with a TDOA based localization algorithm can produce an efficient tumor diagnostic system. It enables the detection of tumor presence, as well as the triangulation of its location, and can be further developed into a powerful "image and treat" system.