This paper proposes a novel meshless local integral equation (LIE) method for numerical solutions of two and three-dimensional Poisson equations. The proposed method can be regarded as a new variant of the meshless local Petrov-Galerkin (MLPG) method which already has six variants, and so the proposed method can be called MLPG7. A variant of MLPG called local boundary integral equation (LBIE) method, uses a localized fundamental solution of Laplace equation as test function. This test function vanishes on local boundaries and therefore, the derived local equations do not involve the gradient of field variables. The motivation for new formulation is using an average of LBIE equation over radius of local sub-domains instead of a single sub-domain. A new kernel is introduced which is a new modification of fundamental solutions of Laplace equation. It is proved that using the new kernel as test function leads to the same local equations as averaging. Infact, the new formulation is a modification of the LBIE method for which the boundary integral is replaced with a domain integral. It is proved that new local weak formulation is equivalent with strong form. The convergence of the method for the case of regularly spaced nodal points is proved. For trial approximation, this paper uses Gaussian radial basis functions (Gaussian RBF), however, derivative free property of the method allows the use of any non-differentiable basis functions. Stability and convergence of the method are numerically studied by considering both 2D and 3D problems with regular and irregular nodal points. The method is compared with LBIE, finite differences (FD) and RBF-FD methods and the numerical results reveal the significance of the proposed method.