A multichannel source activity detection system, e.g., a voice activity detection (VAD) system, and method that exploits spatial localization of a target audio source is provided. The method includes the steps of receiving a mixed sound signal by at least two microphones; Fast Fourier transforming each received mixed sound signal into the frequency domain; filtering the transformed signals to output a signal corresponding to a spatial signature of a source; summing an absolute value squared of the filtered signal over a predetermined range of frequencies; and comparing the sum to a threshold to determine if a voice is present. Additionally, the filtering step includes multiplying the transformed signals by an inverse of a noise spectral power matrix, a vector of channel transfer function ratios, and a source signal spectral power.