Localization of sensor nodes is an important aspect in Wireless Sensor Networks (WSNs). This paper presents an improved DV-hop localization algorithm which increases the accuracy of DV-hop algorithm without significant increase in the computational complexity. The first proposed algorithm utilizes K-means technique followed by node repositioning. The second proposed algorithm is also based on K-means technique followed by cluster division and Direction of Arrival (DoA) localization. The latter algorithm is used when node repositioning cannot be achieved due to restriction in certain applications. The proposed localization algorithm have been thoroughly evaluated through simulations and the results demonstrate a significant improvement in accuracy.