This paper addresses the detection and imaging of a small tumor underneath the inner surface of the human intestine. The proposed system consists of an around-body antenna array cooperating with a capsule carrying a radio frequency (RF) transmitter located within the human body. This paper presents a modified Levenberg-Marquardt algorithm to reconstruct the dielectric profile with this new system architecture. Each antenna around the body acts both as a transmitter and a receiver for the remaining array elements. In addition, each antenna also acts as a receiver for the capsule transmitter inside the body to collect additional data which cannot be obtained from the conventional system. In this paper, the synthetic data are collected from biological objects, which are simulated for the circular phantoms using CST studio software. For the imaging part, the Levenberg-Marquardt algorithm, which is a kind of Newton inversion method, is chosen to reconstruct the dielectric profile of the objects. The imaging process involves a two-part innovation. The first part is the use of a dual mesh method which builds a dense mesh grid around in the region around the transmitter and a coarse mesh for the remaining area. The second part is the modification of the Levenberg-Marquardt method to use the additional data collected from the inside transmitter. The results show that the new system with the new imaging algorithm can obtain high resolution images even for small tumors.