A method for free-breathing magnetic resonance imaging (MRI) using iterative image-based respiratory motion correction is provided. An MRI system is used to acquired k-space data and navigator data from a subject. The k-space data is then sorted into a plurality of data bins using the navigator data. A motion correction parameter is estimated for each data bin and is applied to the respective k-space data in that bin. The corrected k-space data segments are then combined to form a corrected k-space data set, from which an image is reconstructed. The process may be iteratively repeated until an image quality metric is optimized for example, until an image sharpness measure is sufficiently maximized.
