Abstract-In this work, a multiple sound source localization and counting method is presented, that imposes relaxed sparsity constraints on the source signals. A uniform circular microphone array is used to overcome the ambiguities of linear arrays, however the underlying concepts (sparse component analysis and matching pursuit-based operation on the histogram of estimates) are applicable to any microphone array topology. Our method is based on detecting time-frequency (TF) zones where one source is dominant over the others. Using appropriately selected TF components in these "single-source" zones, the proposed method jointly estimates the number of active sources and their corresponding directions of arrival (DOAs) by applying a matching pursuit-based approach to the histogram of DOA estimates. The method is shown to have excellent performance for DOA estimation and source counting, and to be highly suitable for real-time applications due to its low complexity. Through simulations (in various signal-to-noise ratio conditions and reverberant environments) and real environment experiments, we indicate that our method outperforms other state-of-the-art DOA and source counting methods in terms of accuracy, while being significantly more efficient in terms of computational complexity.