As a preprocessor of the automatic speech recognizer in a noisy environment, a microphone array system has been investigated to reduce the environmental noise. In usual microphone array design, a plane wave is assumed for the sake of simplicity (far-field assumption). However, this far-field assumption does not always hold, resulting in distortion in the array output. In this report, the subspace method, which is one of the high resolution spectrum estimator, is applied to the near-field source localization problem. A high resolution method is necessary especially for the near-field source localization with a small-sized array. By combining the source localization technique with a spatial inverse filter, the signal coming from the multiple sources in the near-field range can be separated. The modified minimum variance beamformer is used to design the spatial inverse filter. As a result of the experiment in a real environment with two sound sources in the near-field range, 60-70% of word recognition rate was achieved.