The recording of a point source wavefield can be decomposed into a set of plane-wave components, each corresponding to different angles of propagation. Such plane-wave seismograms have a far simpler structure than the spherical waves of the point source records, which makes them desirable in many steps of seismic data processing such as predictive deconvolution, migration, inversion, etc. The implementation of the plane-wave decomposition requires the computation of the Radon transform in the discrete data domain. A straightforward application of the integral solutions to geophysical problems fails to compensate for the sampled and limited aperture nature of the actual data. In this paper, we give a new method in which the x-t domain is shown to relate to the p-tau domain by a linear system of equations in the time-space domain. An iterative least-mean-square-error method is introduced to solve the set of equations. This method is combined with a unique method of alias suppression which uses the reasonable range of dips possible at a given (x, t) location and acts as interpolation of the x-t data. This combination improves the initial estimates and speeds up convergence. Our transform is independent of the number of plane-waves and selected ray parameter range. We present synthetic and real data examples to demonstrate the accuracy and robustness of the method. The examples are compared against results using the generalized Radon transform approach used by Beylkin (1987) and against conventional slant stack.