A closed-form method of acoustic emission (AE) source location for a velocity-free system using complete time difference of arrival (TDOA) measurements is proposed in this paper. First, this method established the governing equation of unknown acoustic velocity for each sensor; then, the governing equations of each of the three sensors were transformed into a linear equation, which can form a system of linear equations with the complete TDOA measurements. Third, the least squares solutions of the AE source coordinate and acoustic velocity were separately solved by an orthogonal projection operator. The proposed method was verified by the pencil-lead break experiment, and the results showed that the location accuracy and stability of the proposed method were better than those of traditional methods. Moreover, a simulation test was carried out to investigate the influence of noise scales on the location accuracy, and the results further prove that the proposed method holds higher noise immunity than the traditional methods.