In this paper, we consider the saturation problem in the 3GPP LTE cellular system caused by the expected huge number of machine‐type communication (MTC) devices, leading to a significant impact on both machine‐to‐machine (M2M) and human‐to‐machine H2H traffic. M2M communications are expected to dominate traffic in LTE and beyond cellular networks. In order to address this problem, we proposed an advanced architecture designed for 5G LTE networks to enable the coexistence of H2H/M2M traffic, supported by different priority strategies to meet QoS for each traffic. The queuing strategy is implemented with an M2M gateway that manages four queues allocated to different types of MTC traffic. The optimal radio resource allocation method in LTE and beyond cellular networks was developed. This method is based on adaptive selection of channel bandwidth depending on the QoS requirements and priority traffic aggregation in the M2M gateway. Additionally, a new simulation model is proposed which can help in studying and analyzing the mutual impact between M2M and H2H traffic coexistence in 5G networks while considering high and low priority traffics for both M2M and H2H devices. This simulator automates the proposed method of optimal radio resource allocation between the M2M and H2H traffic to ensure the required QoS. Our simulation results proved that the proposed method improved the efficiency of radio resource utilization to 13% by optimizing the LTE frame formation process.