{\em{\bf Abstract}} - Since radio spectrum is a scarce resource, efficient allocation of frequency channels is critical for the performance of mobile systems. The {\em update approach} is a way to allocate radio channels among cells in distributed fashion. In update-based algorithms, each cell maintains its local knowledge about channels available for its use by exchanging messages among cells in its interference neighborhood. The existing update algorithms suffer from high message complexity or high storage overhead. In this paper, we present a distributed update-based algorithm that imposes lower message complexity, while requiring smaller storage overhead than existing algorithms. %\end{abstract}