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It is known that dynamic allocation of channels and power in a frequency/time-division multiple access system can improve performance and achieve higher capacity. Various algorithms have been separately proposed for dynamic channel assignment (DCA) and power control. Moreover, integrated dynamic channel and power allocation (DCPA) algorithms have already been proposed based on simple power control algorithms. In this paper, we propose a DCPA scheme based on a novel predictive power control algorithm. The minimum interference DCA algorithm is employed, while simple Kalman filters are designed to provide the predicted measurements of both the channel gains and the interference levels, which are then used to update the power levels. Local and global stability of the network are analyzed and extensive computer simulations are carried out to show the improvement in performance, under the dynamics of user arrivals and departures and user mobility. It is shown that call droppings and call blockings are decreased while, on average, fewer channel reassignments per call are required.