Sound source localization and signal segregation using a small number of microphone elements is expected in not only multimedia products but also in daily-use products, such as hearing aids. The frequency domain binaural model can localize a sound source and segregate signals coming from a specific direction using two input signals. In this paper, a method of two sound sources localization in azimuth and elevation using interaural phase and level differences is proposed. The performance of this localization is examined by computer simulations for two concurrent speakers. In addition, the performance of the proposed method on the median plane is also confirmed. As a result, the proposed method is found to localize two sound sources in azimuth and elevation simultaneously. The possibility of sound source localization within 10 error for one sound source is 60-80% when the segmental power ratio is 0 dB. The possibility for the other sound source is 40-70%.