The present invention relates generally to a method for determining which radio channel to allocate to a mobile station for communicating via a mobile radio system, and a system for mobile radio communication in which a radio channel can be allocated to a mobile station. More particularly, the invention relates to a system and method for radio channel allocation where the radio quality on candidate radio channels is measured and the interference effects of establishing a radio connection on the candidate radio channels on already existing radio connections is estimated. Using these measurement results and estimates, as well as the information about the quality requested by the connection to be set up, it is determined which radio channel (if any) shall be allocated to the MS.