To handle the fast-growing demand for high data rate applications, the capacity of cellular networks should be reinforced. However, the available radio resources in cellular networks are scarce, and their formulation is expensive. The state-of-the art solution to this problem is a new local networking technology known as the device-to-device (D2D) communication. D2D communications have great capability in achieving outstanding performance by reusing the existing uplink cellular channel resources. In D2D communication, two devices in close proximity can communicate directly without traversing data traffic through the evolved-NodeB (eNB). This results in a reduced traffic load to the eNB, reduced end-to-end delay, and improved spectral efficiency and system performance. However, enabling D2D communication in an LTE-Advanced (LTE-A) cellular network causes severe interference to traditional cellular users and D2D pairs. To maintain the quality of service (QoS) of the cellular users and D2D pairs and reduce the interference, we propose a distance-based resource allocation and power control scheme using fractional frequency reuse (FFR) technique. We calculate the system outage probability, total throughput and spectrum efficiency for both cellular users and D2D pairs in terms of their signal-to-interference-plus-noise ratio (SINR). Our simulation results show that the proposed scheme reduces interference significantly and improves system performance compared to the random resource allocation (RRA) and resource allocation (RA) without sectorization scheme.