Localization of focal electrical activity in the brain using dipole source analysis of the electroencephalogram (EEG), is usually performed by iteratively determining the location and orientation of the dipole source, until optimal correspondence is reached between the dipole source and the measured potential distribution on the head. In this paper, we investigate the use of feed-forward layered artificial neural networks (ANNs) to replace the iterative localization procedure, in order to decrease the calculation time. The localization accuracy of the ANN approach is studied within spherical and realistic head models. Additionally, we investigate the robustness of both the iterative and the ANN approach by observing the influence on the localization error of both noise in the scalp potentials and scalp electrode mislocalizations. Finally, after choosing the ANN structure and size that provides a good trade off between low localization errors and short computation times, we compare the calculation times involved with both the iterative and ANN methods. An average localization error of about 3.5 mm is obtained for both spherical and realistic head models. Moreover, the ANN localization approach appears to be robust to noise and electrode mislocations. In comparison with the iterative localization, the ANN provides a major speed-up of dipole source localization. We conclude that an artificial neural network is a very suitable alternative for iterative dipole source localization in applications where large numbers of dipole localizations have to be performed, provided that an increase of the localization errors by a few millimetres is acceptable.