The vision of future wireless networks is coexistence of current existing access networks. The different access networks will be bound together into a single network and the Internet Protocol (IP) will be the glue. To fulfill this vision, one of the most challenging parts is to develop sophisticated policies for vertical handovers. When and in what way the handoffs are performed affects the performance of the mobile services. Traditional algorithms use a received signal strength measurement and an optional threshold, hysteresis, or a dwell timer to determine the handoff decision. Handoff decision algorithms use cost function values for selecting the network for handoff. Thus we propose a vertical handoff decision algorithm for heterogeneous networks based on the velocity of Mobile Node