In the satellite navigation systems, distortion of a received signal correlation function, due to the multipath propagation, can gravely degrade position estimation. The positioning accuracy is strongly affected by the quality of the received signal delay estimations. In the paper we propose a Bayesian-based extension of the MEDLL algorithm capable of estimating the parameters of the line-of-sight (LOS) signal and the multipath signals. The new algorithm takes into account statistical properties of the LOS signal and the reflected signals to find a Bayesian solution for the parameters.