In this paper, we introduce a promising iterative interference alignment (IA) strategy for multiple-input multiple-output (MIMO) multi-cell downlink networks, which utilizes the channel reciprocity between uplink/downlink channels. We intelligently combine iterative beamforming and downlink IA issues to design an iterative multiuser MIMO IA algorithm. The proposed scheme uses two cascaded beamforming matrices to construct a precoder at each base station (BS), which not only efficiently reduce the effect of inter-cell interference from other-cell BSs, referred to as leakage of interference, but also perfectly eliminate intra-cell interference among spatial streams in the same cell. The transmit and receive beamforming matrices are iteratively updated until convergence. Numerical results indicate that our IA scheme exhibits higher sum-rates than those of the conventional iterative IA schemes. Note that our iterative IA scheme operates with local channel state information, no time/frequency expansion, and even relatively a small number of mobile stations (MSs), unlike opportunistic IA which requires a great number of MSs.