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Multicast transmission may use network resources more efficiently than multiple point-to-point messages; however, creating optimal multicast trees (Steiner Tree Problem in Networks) is prohibitively expensive. For this reason, heuristic methods are generally employed. Conventional centralized Steiner heuristics provide effective solutions, but they are unpractical for large networks, since they require complete knowledge of the network topology. This paper proposes a distributed algorithm for the heuristic solution of the Steiner Tree Problem. The algorithm allows the construction of effective distribution trees using a coordination protocol among the network nodes. The algorithm has been implemented and extensively tested both in simulation, and on experimental networks. Performance evaluation indicates that our algorithm performs as well as the centralized version, providing good levels of convergence time and communication complexity. Moreover, the proposed approach outperforms the state-of-the-art distributed algorithms for multicast tree setup.