Device positioning has generally been recognized as an enabling technology for numerous vehicular applications in intelligent transportation systems (ITS). The downlink time difference of arrival (DL-TDOA) technique in cellular networks requires range information of geographically diverse base stations (BSs) to be measured by user equipment (UE) through the positioning reference signal (PRS). However, inter-cell interference from surrounding BSs can be particularly serious under poor network planning or dense deployments. This may lead to a relatively longer measurement time to locate the UE, causing an unacceptable location update rate to time-sensitive applications. In this case, PRS muting of certain wireless resources has been envisioned as a promising solution to increase the detectability of a weak BS. In this paper, to reduce UE measurement latency while ensuring high location accuracy, we propose a muting strategy managed by positioning functions that utilizes a combination of optimized pseudo-random sequences (CO-PRS) for multiple BSs to coordinate the muting of PRS resources. The original sequence is first truncated according to the muting period, and a modified greedy selection is performed to form a set of control sequences as the muting configurations (MC) with balance and concurrency constraints. Moreover, efficient information exchange can be achieved with the seeds used for regenerating the MC. Extensive simulations demonstrate that the proposed scheme outperforms the conventional random and ideal muting benchmarks in terms of measurement latency by about 30%, especially when dealing with severe near-far problems in cellular networks.