Abstract: Wireless sensor networks (WSNs) have become an interesting area to researchers in recent times due to the low cost of sensor nodes, wide application areas and with low or no cost of maintenance after deployment in a target area. Sensor nodes are expected to remain in operation for a longer time without human intervention. However, due to the small size and cost of these nodes, they have been equipped with small batteries with limited energy source. This has been a major constraint to WSNs, since in most cases sensor nodes are deployed in large number where it may be difficult or impossible to replace the batteries of each node when they run out of supplying power. In this study, a novel Routing Algorithm for Energy Optimization in WSNs (RAEO) has been proposed to reduce communication distance among the nodes by transmitting sensed data through the shortest path from source node to the base station along the neighbouring nodes. The simulation results show that our approach reduces energy consumption during data transmission and increases networks lifetime compared with MECN and SPIN protocols. Finally, the proposed algorithm reduces protocol propagation delay and packets loss during data transmission.