The wireless technology and its application growing faster and faster in last decades. Mobile network is one of the fastest growing technologies in wireless network. This headed to some challenges that face mobile network such as how to serve the big number of users, efficiently of frequencies is scarce and interferes with each other. One of the solutions to deal with such challenges is Cellular Networks which is used to divide a geographical area in to cells so that we can reuse the scarce frequencies in order to support more users and also to decrease interference. This paper introduces the importance of dynamic channel allocation in cellular networks and how much gain could be utilized by this technique. The Methodology depend on an intensive reading of what other research has been done in the field, then the model factors and the goal was built according to the main importance issues in this field. In order to realize the complications and limitations of the topic and to have comprehensive understanding many work in the literature have been revised. The mechanism was tested in two different scenarios, with uniform and non-uniform load distribution. For the findings: A new mechanism was introduced to overcome the previous limitations and to gain more efficient results. Also it utilizes artificial intelligence approach to make the allocation process optimal. Moreover, the new mechanism depends on four factors cell size, coordination, frequency reuse, and hand over to make the allocation process efficient and reliable.