In recent years, the Internet can be represented as a cloud and the term “Cloud Computing” in computing research and industry today has the potential to make the new idea of „computing as a utility‟ in the near future. The goal of Cloud computing is to provision of computing and storage capacity as a service to a heterogeneous community of end-users. Resource management is key process in cloud computing for cloud service provider. Resource allocation is part of resource management process and main objective of it is to balance the load across Virtual Machine (VM). This paper proposes a novel VM allocation load balancing algorithm. Allocation is made on the basis of the Assignment Problem‟s solution method concept, which is formulated for cloud. Further, this paper also provides the anticipated results with the implementation of the proposed algorithm. General Terms Cloud Computing