Matched-field replica vector should be calculated using parabolic equation in a range-dependent waveguide, this means that the matched-field localization is too computationally intensive, hence its engineering application is seriously hindered. A virtual time-reversal method for passive source localization for a range-dependent waveguide is presented. The number of parabolic equation computational grids in virtual time-reversal method is much smaller than that in matched-field processing for a range-dependent waveguide. Thus, the computational cost can be greatly reduced. Different from the matched-field processing, the virtual time-reversal method is a back-propagation process, which explores and utilizes the properties of reciprocity and superposition. It can be realized by weighting the replica surface with the complex conjugate of the data received on the corresponding element, followed by a summation of the processed received data. This performance of virtual time-reversal method for source localization is validated through numerical simulations and data from the Mediterranean Sea.