We present a new iterative approach to solving neutral-particle transport problems. The scheme divides the transport solution into its particular and homogeneous or “source-free” components. The particular problem is solved directly, while the homogeneous problem is found iteratively. To organize the iterative inversion of the homogeneous components, we exploit the structures of the so called Case-modes that compose it. The asymptotic Case-modes, those that vary slowly in space and angle, are assigned to a diffusion solver. The remaining transient Case-modes, those with large spatial gradients, are assigned to a transport solver. The scheme iterates on the contribution from each solver until the particular plus homogeneous solution converges. The iterative method is implemented successfully in slab geometry with isotropic scattering and one energy group. The convergence rate of the method is only weakly dependent on the scattering ratio of the problem. Instead, the rate of convergence depends strongly on the material thickness of the slab, with thick slabs converging in few iterations. The transient solution is obtained by applying a One Cell Inversion scheme instead of a Source Iteration based scheme. Thus, the transient unknowns are calculated with little coordination between them. This independence among unknowns makes our scheme ideally suited for transport calculations on parallel architectures. The slab geometry iterative scheme is adapted to XY geometry. Unfortunately, this attempt to extend the slab geometry iterative scheme to multiple dimensions has not been successful. The exact filtering scheme needed to discriminate asymptotic and transient modes has not been obtained and attempts to approximate this filtering process resulted in a divergent iterative scheme. However, the development of this iterative scheme yield valuable analysis tools to understand the Case-mode structure of any spatial discretization under arbitrary material properties.