An algorithm for implementing variable guard interval (VGI) in Orthogonal Frequency Division Multiplexing (OFDM) based wireless networks is presented in this article. The required guard interval is derived as a function of the root mean square (rms) delay spread of the channel, time duration of discrete fourier transform used in OFDM and the required signal to noise ration (SNR). In this work the algorithm has been verified in a highly dynamic channel condition and results show that the algorithm can reduce guard interval significantly and is also found to be robust against time variation of rms delay spread and mean excess delay of the channel.