Abstract. Denoising source separation is a recently introduced framework for building source separation algorithms around denoising procedures. Two developments are reported here. First, a new scheme for accelerating and stabilising convergence by controlling step sizes is introduced. Second, a novel signal-variance based denoising function is proposed. Estimates of variances of different source are whitened which actively promotes separation of sources. Experiments with artificial data and real magnetoencephalograms demonstrate that the developed algorithms are accurate, fast and stable.