Analytic solutions of the functional equation f[z, φ{g(z)}] = φ(z), in which f(z, w) and g(z) are given analytic functions and φ(z) is the unknown function, are investigated in the neighbourhood of points ζ such that g(ζ) = ζ. Conditions are established under which each solution φ(z) may be given as the limit of a sequence of functions φn(z), defined by the recurrence relation φn+1(Z) = ƒ[z, φn{g(z)}], the function φn(z) being to a large extent arbitrary.