A method and a system are described for resolution of collision of Physical Cell Identifier (PCI) between a plurality of base stations. The method includes determining a value of a Physical Cell Identifier Collision Margin (PCICM). The method includes detecting a PCI collision among a plurality of base stations based on the determined PCICM value. In an embodiment, the plurality of base stations may include a Serving Base Station (SBS) and one or more Neighboring Base Stations (NBS). The method includes estimating a relative distance between the SBS and each of the one or more NBS. The method includes reconfiguring a new PCI value associated with the SBS based on the estimated relative distance.