The coordination of the directional relays is very much complicated due to the increased inter connectivity of the system. The problem of coordinating protective relays consists of selecting the suitable settings such that their fundamental protective objectives are met for a variety of system configurations and conditions. In this paper a novel method based on network topology is suggested to solve the coordination problem. The method is implemented on radial networks, ring networks and combination of ring and radial networks.A comprehensive software package for relay coordination, using this method has been developed and tested successfully on wide range of networks.