This paper studies set-membership estimation for discrete linear time-varying systems subject to unknown disturbance and noise, which are bounded by ellipsoids. To improve the existing ellipsoid-based set-membership estimation methods, we propose a new set representation tool, called ellipsoid bundle, which combines the advantages of ellipsoids and zonotopes for uncertainty set representation and computation. Then, ellipsoidal bundles are used to design a new set-membership estimation method.