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In cellular networks, the handoff is a crucial and essential part to be considered. The handoff decisions are made based on the measurements of pilot signal strength received from candidate Base stations (BSs). In handoff algorithms, the received pilot signal strength is typically averaged to diminish the undesirable effect of the fast fading component. Unfortunately, the averaging process can substantially alter the characteristics of path loss and shadowing components, causing increased handoff delay. This paper proposed a local averaging technique for processing the received pilot signal strength, which can significantly improve handoff performance in cellular networks, especially in the non-line-of-sight case, when the mobile station turns around a corner. A discrete-time framework for handoff analysis is developed. Then the performance of hysteresis-based handoff algorithm is evaluated using local averaging technique and the performance of proposed technique is compared with the conventional technique.