Tracking a mobile node using wireless sensor network (WSN) under cooperative system among anchor node and the mobile node, has been discussed in this work, interested to the indoor positioning applications. Developing an indoor location tracking system based on received signal strength indicator (RSSI) of WSN is considered cost effective and the simplest method. The suitable technique for estimating position out of RSSI measurements is the extended Kalman filter (EKF) which is especially used for nonlinear data as RSSI. In order to reduce the estimated errors from EKF algorithm, this work adopted forward data processing of the EKF algorithm to improve the accuracy of the filtering output, its called iterated extended Kalman filter (IEKF). However, using IEKF algorithm should know the stopping criterion value that is influenced to the maximum number iterations of this system. The number of iterations performed will be affected to the computation time although it can improve the estimation position. In this paper, we propose modified IEKF for mobile cooperative tracking system within only 4 iterations number. The illustrated results using RSSI measurements and simulation in MATLAB show that our proposed method has the capability to reduce error estimation percentage up to 19.3% , with MSE (mean square error) 0.88 m compared with a conventional IEKF algorithm with MSE 1.09 m. The time computation performance of our proposed method achieved in 3.55 seconds which is better than adding more iteration process.