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In this paper, an new algorithm for frequency channel allocation in cellular mobile systems is proposed and examined in comparison with a dynamic load balancing strategy for channel assignment using selective borrowing in cellular mobile environment and a new adaptive channel assignment algorithm in cellular mobile system. When making a borrowing decision, the states of the co-channel cells of a potential lender cell are also taken into account to prevent potential channel borrowing loop. The proposed algorithm provides a co-channel locking scheme that efficient to avoid the co-channel interference and reduce the number of locking co-channel cells. A simulation model was designed by C-Free languages to measure the performance of our algorithm. Results show that new algorithm provides the number of channel borrowing is highest and number of locking co-channel cell is lowest.