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We propose a position assisted relaying and handover algorithm for a hybrid ad hoc cellular system. In such a system, the user equipment (UE) is assumed to be able to estimate its geo-location and has the ability to establish direct connections with nearby UEs to form a temporary wireless ad hoc network. The position information of the UE allows us to estimate the mobility profile of each individual UE. This estimate is then used to adjust the hysteresis value dynamically, to encourage or discourage handover. The position information also allows the UE to select the best nearby UE for relaying if the link quality between the UE and the node B (NB) falls below a threshold level. Simulation results show significant improvement, in terms of call outage probability, active set update rate and mean active set number, over the soft handover (SHO) algorithm for UTRA.