Abstract: This study presents a Novel Distributed Iterative Interference Alignment (NDIIA) algorithm for three-user M-antenna multiple-input multiple-output interference channels which can approach very close to the Degree of Freedom (DoF) upper bound. NDIIA algorithm achieves the great sum capacity improvement offered by interference alignment. NDIIA algorithm loosens the global channel knowledge assumption in previous research works and NDIIA assumes that only local channel knowledge is available to each receiver. Compared with Gomadam-Jafar algorithm, NDIIA algorithm lets each receiver guide one interfering transmitter to update its interfering signal’s coding vectors instead of updating the desired signal’s coding vectors which perfectly aligns with the other interfering signal’s coding vectors. Based on the reciprocity property of wireless networks, the NDIIA algorithm achieves interference alignment based on the idea of interference regulation. Simulation results suggest that the NDIIA algorithm can achieve perfect interference alignment with high probability and is effective and efficient to approach the DoF upper bound.