This paper presents a new approach for improving the localization of passive ultra high frequency radio frequency identification (RFID) tags in line-of-sight channels using a received signal strength indicator (RSSI) technique. In practice, the complex propagation in the indoor channels and also the variability of some parameters of the RFID equipment itself introduces significant amount of errors when the operation of localization carries out the RSSI technique. Indeed, as the calculation is based on a trilateration, the incomplete knowledge of the propagation and some parameters of RFID tags leads to estimate distances which are wrong, and therefore the localization cannot be correct. In order to overcome this drawback, the proposed method takes into account the presence of unknown parameters relying on a dichotomous algorithm which includes probabilistic parameters. The presented simulation results are in good agreement with the expected theoretical results. Experimental results show that the proposed method strongly increases the accuracy of the estimated position of tags. Compared to other approaches based on the improvement of the RSSI technique, this method does not require too much complexity in terms of materials (no need for specific architecture or reference tags) and processing (fast and simple algorithm).