In this paper, a new method for the estimation of the direction-of-arrival (DOA) and relative propagation delay in the context of multipath rays is described. The proposed algorithm processes the received signals at a uniform circular array and uses ESPRIT-like approach for the estimation of the relevant parameters. We show, in particular that in the context of circular arrays, this algorithm increases drastically the accuracy of the estimated parameters with only a small number of sensors and limited processing complexity. These results encourage the use of such configurations in future wireless networks.