The Generalized cross-correlation (GCC) method is most commonly used for time delay estimation (TDE). However, the GCC method can result in false peak errors (FPEs) especially at a low signal to noise ratio (SNR). These FPEs significantly degrade TDE, since the estimation error, which is the difference between a true time delay and an estimated time delay, is larger than at least one sampling period. This paper introduces an algorithm that estimates two peaks for two cross-correlation functions using three types of signals such as a reference signal, a delayed signal, and a delayed signal with an additional time delay of half a sampling period. A peak selection algorithm is also proposed in order to identify which peak is closer to the true time delay using subsample TDE methods. This paper presents simulations that compare the algorithms' performance for varying amounts of noise and delay. The proposed algorithms can be seen to display better performance, in terms of the probability of the integer TDE errors, as well as the mean and standard deviation of absolute values of the time delay estimation errors.