In furtive naval environment, high-performance Autonomous Underwater Vehicles (AUVs) are used in various maritime applications e.g. underwater search & mapping, underwater mine countermeasures, marine habitat monitoring etc. Navigation is the most indispensable feature for the successful operation of the underwater vehicle in a range of scientific, military and commercial applications. Accurate navigation is vital for utility of the data it collects, thus making AUV advantageous both economically and technically. This research paper proposes an architecture for navigation of AUV. This navigation system is based on two sensors i.e. Multibeam Echo Sounder and Doppler Velocity Sonar. While the main approach of ocean floor map building and matching is adopted in first system, the conventional strategy of error drift rate bounding is followed in second one. This work evaluates various parameters of these sub-systems for navigation and various ways to optimize their performance so that no reliance on external source of navigation is required.