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In wireless communication, low propagation delay and low power requirements of satellite are key requirements which makes low earth orbit (LEO) satellite preferable over others. Over the years a plenty of researches had been done in this field of satellite handover management, but the problem remains unsolved. One such method is the reservation of a few channels specifically for handover calls. One demerit of this scheme is that not all channels are available for allocation of new calls, leading to an increase in new call blocking probability. Also this scheme may lead to unnecessary reservation of channels for handover even when the number of handovers is very small. During such a period the reserved channels could have been used for allocation of new calls. So, in this paper we are going to propose a new Neighbour Location Based Channel Reservation scheme for efficient utilization of resources (channels) in handover and new channel allocation in LEO Satellite communication. In this scheme, we are reserving few channels in each spot beam especially for handoff based on the number of mobile stations in neighbour locations and the average handover call arrival rate. In the simulation, this approach reduces the unnecessary complexity and unnecessary reservation of resources (channels) which in turn reduces the complexity of the communication network.