Diffraction tomography (DT) is an inversion technique that reconstructs the refractive index distribution of a weakly scattering object. In this paper, a novel reconstruction algorithm for three-dimensional diffraction tomography employing spherical-wave sources is mathematically developed and numerically implemented. Our algorithm is numerically robust and is much more computationally efficient than the conventional filtered backpropagation algorithm. Our previously developed algorithm for DT using plane-wave sources is contained as a special case.