In this paper, an ADMM based novel distributed wide-area control architecture is proposed for damping the interarea oscillations. In this approach, first, an interconnected power system is divided into areas based on coherency grouping. Second, local processors are assigned on each area that estimates a blackbox transfer function model based on Lagrange multipliers using measurements. These local area processors are then used to estimate a global transfer function model of the power system based on a consensus algorithm through a global processor. After convergence, a transfer function residue corresponding to the inter-area mode of interest is derived, to determine optimal wide area control loop. Finally, a wide-area damping controller is designed based on this information. The efficacy of the controller is validated using two area and IEEE-39 bus test systems on RTDS/RSCAD and MATLAB co-simulation platform.