This paper develops a subspace-based method for direction-of-arrival (DOA) estimation of uniform linear array (ULA) in the presence of mutual coupling. As the mutual coupling coefficient between two sensor elements is inversely related to their separation and is negligible when they are separated by a few wavelengths, the mutual coupling matrix (MCM) of a ULA can be well approximated as a banded symmetric Toeplitz matrix, which greatly reduces the number of unknown parameters to be estimated. Using the subspace principle, we propose a new method for joint estimation of the DOAs of incoming signals and banded symmetric Toeplitz MCM by reconstructing the steering vector to a specific matrix form. The proposed method achieves a better performance especially for weak signals than the method in, since the whole array, instead of the middle subarray in, is used for DOA estimation. Simulation results illustrate that both DOAs and mutual coupling coefficients can be estimated efficiently with the proposed method.