The article deals with design of method of interpolating for virtual spherical image of arbitrary position using two nearest spherical panoramic images from Google Street View. The preliminary analysis of the source data delivered by the Google Company is carried out. The interpolation algorithm using the refined parameters of image orientation and three-dimensional model of the scene is developed. The main attention is paid to automatic processing of artifacts of the interpolated images caused by existence of mobile objects and foreground scene objects. A number of algorithms for artifacts elimination including their detecting, replacement of textures in areas of interest and post-processing of borders for achieving of the best visual effect is developed. Finally, program implementation of the method is created, the results of interpolation with local textures replacement are presented.