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Relative positions are recent solutions to overcome the limited accuracy of GPS in urban environment. Vehicle positions obtained using V2I communication are more accurate because the known roadside unit (RSU) locations help predict errors in measurements over time. The accuracy of vehicle positions depends more on the number of RSUs; however, the high installation cost limits the use of this approach. It also depends on nonlinear localization nature. They were neglected in several research papers. In these studies, the accumulated errors increased with time due to the linearity localization problem. In the present study, a cooperative localization method based on V2I communication and distance information in vehicular networks is proposed for improving the estimates of vehicles’ initial positions. This method assumes that the virtual RSUs based on mobility measurements help reduce installation costs and facilitate in handling fault environments. The extended Kalman filter algorithm is a well-known estimator in nonlinear problem, but it requires well initial vehicle position vector and adaptive noise in measurements. Using the proposed method, vehicles’ initial positions can be estimated accurately. The experimental results confirm that the proposed method has superior accuracy than existing methods, giving a root mean square error of approximately 1 m. In addition, it is shown that virtual RSUs can assist in estimating initial positions in fault environments.