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Time-domain algorithms for blind separation of audio sources can be classified as being based either on a partial or complete decomposition of an observation space. The decomposition, especially the complete one, is mostly done under a constraint to reduce the computational burden. However, this constraint potentially restricts the performance. The authors propose a novel time-domain algorithm that is based on a complete unconstrained decomposition of the observation space. The observation space may be defined in a general way, which allows application of long separating filters, although its dimension is low. The decomposition is done by an appropriate independent component analysis (ICA) algorithm giving independent components that are grouped into clusters corresponding to the original sources. Components of the clusters are combined by a reconstruction procedure after estimating microphone responses of the original sources. The authors demonstrate by experiments that the method works effectively with short data, compared to other methods.