A channel estimation method and apparatus are provided for a terminal in a cellular mobile communication system including a plurality of base stations. The method includes maintaining a maximum number of CSI processes supported by the UE; receiving CSI process report information; determining a number of CSI to be updated based on the maximum number of CSI processes supported by the UE; generating at least one CSI report based on the determined number of CSI to be updated; and transmitting the at least one CIS report to an evolved Node B (eNB).