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Scheduling schemes achieving multiuser diversity gain are suitable to support high rate bursty data services, while orthogonal resource hopping schemes achieving statistical multiplexing gain are suitable to accommodate low/medium rate applications and real-time traffic. Hence, a hybrid mode system has been proposed to support both the scheduling and hopping schemes. We propose a distributed radio resource allocation scheme for the hybrid mode system and compare the system performance of the proposed distributed allocation scheme with that of a localized resource allocation scheme for varying the number of users. In addition, scheduling criterion threshold values for the proposed distributed allocation scheme are derived to maintain the proportion of scheduling to hopping modes. The proposed scheme allocates radio resources adaptively according to users' channel states between scheduling and hopping modes and, thus, it significantly increases system capacity as the scheduling criterion threshold value increases.