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Self-configuration ability is the main attribute of LTE/LTE-A femtocell networks. Considering the enormous number of femtocells, the distributed assignment of Physical Cell Identifiers (PCIs) to femtocells, assuring confusion-free and collision-free scenarios, is quite a challenging task. In this paper, we propose a fully distributed algorithm that enables assigning PCIs in a collision-free manner and resolving confusion events based on neighbouring deployment of PCIs. The algorithm is compared with the random algorithm. Effectiveness of proposed algorithm is evaluated by comparing the number of confusions for various femtocell overlapping, PCIs ranges and sizes of neighbourhood area. Simulation results indicate that compared to the random algorithm, the proposed algorithm leads to fewer confusion events and lower network overhead even in dense femtocell environments.