Key distribution is an inevitable part of the wireless networks and is important for node identification and authentication and also is important for maintaining data confidentiality and integrity of the communication system. In this paper, the numerous key distribution algorithms already implemented in the wireless sensor networks have been studied along with their architecture and their efficiency based on the various hardware constraints of WSN and the various attacks affecting the wireless networks like that of the DOS and node duplication attacks. On the basis of the study, a new key distribution algorithm have been suggested to overcome the drawbacks of the other methods and has focused on the same in ad hoc networks so that it can be implemented in critical situations requiring random deployment of sensors in a dynamic environment. The authors have suggested a symmetric key algorithm based on relative counters and timers which will be used to create exclusive pair keys from a master key provided by a trusted base station.