In developing a high accuracy terrestrial radio navigation system, as a complement to a global navigation satellite system (GNSS), it is recognized that the performance of time delay estimation is proportional to, and thereby limited by, the signal bandwidth. Given a possibly narrow signal bandwidth, the central carrier phase can, alternatively, provide a better distance accuracy, though the central carrier phase cycle ambiguity should be resolved. In practice, the carrier phase may be perturbed by multipath. In this paper, considering an orthogonal frequency division multiplexing (OFDM) signal, we propose a two-step carrier phase estimation method to reduce the error introduced by multipath. First, the propagation delay of the LoS path is coarsely determined, then the carrier phase is estimated using the earlier determined coarse time delays. Furthermore, a positioning model only based on carrier phase estimates is presented in this paper. The proposed technique is evaluated by statistical analyses and a simulated OFDM-based terrestrial positioning system in different roadway multipath environments. The results show that the impact of multipath on carrier phase estimation can be largely mitigated, so that the carrier phase can be used for precise positioning. In addition, fixing the integer carrier phase cycle ambiguities can significantly reduce the time for the position solution to converge to high precision.