Objectives: Heterogeneous environment is formed by co-existing interworking networks, with the objective of providing mobile users with best connectivity at anytime. This is facilitated by handover process. In this paper we have proposed Utility Theory based vertical handover decision algorithm, taking into consideration utility functions/parameters like bandwidth, monetary cost, security and power consumption levels of candidate network available for handover. Methods/ Analysis: The proposed algorithm uses hybrid of Fuzzy logics and AHP to assign weights to the parameters and since the algorithm is utility based, the network are ranked using simple weighted sum of the parameters. Findings: The proposed algorithm selects the network which satisfies all the network selection criteria. Higher the level of user satisfaction served by the network, more it is suitable for handover in heterogeneous environment. Conclusion/Applications: The proposed algorithm provides higher level of user satisfaction. It is well suited for random and imprecise wireless environment since it makes use of fuzzy logics instead of crisp values. Furthermore to check its applicability in real time the proposed algorithm can be implemented on a simulation tool.