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The demand for mobile radio communications is ever increasing and is expected to be high bandwidth. However, there is a limit to current radio frequency resources. A good resource management scheme in integrated wireless LAN and cellular networks should support as many mobile & laptop users as possible while maintaining the necessary quality of service. It is widely accepted that connection dropping is more annoying than connection blocking and more important in determining user satisfaction. In this paper, we present a flexible and dynamic resource management scheme, namely modified Dynamic Resource Allocation with Flexible Reservation (mDRAFR), for heterogeneous wireless networks. The proposed resource allocation scheme considers two different handoff schemes (Horizontal & Vertical) and allocation of channels can be flexible to adapt to the different scenarios. We can change the portion of reserved channels according to different area and traffic, like rural area, urban area and highway.