A radio receiver (300) having a multi-state variable threshold automatic gain control (AGC) for fast channel scanning acquisition includes an amplifier (303) having an automatic gain control (AGC) for controlling the gain of a receiver analog signal. An analog-to-digital converter (ADC) (311) is used for converting the receiving analog signal to a digital signal while a digital signal processor (DSP) (325) operates to process the digital signal. A signal magnitude estimator (315) in an AGC controller (313) provides a signal strength estimate of the received signal. The AGC controller (313) then sets the receiver amplifier (303) for an open-loop AGC operational mode and sets a first threshold for triggering an interrupt service request (ISR). This ISR is provided the DSP (325) and the host processor (327) if a radio frequency (RF) signal is detected above a first threshold during a priority scan of a priority channel to minimize interruptions in audio during priority scan.