In the RFID system, the reader transmits a query message to tags in order to identify a unique ID of tags within its detection range. The procedures for arbitrating a collision is essential because the multiple tags can response simultaneously in the same to the query of the Reader. This procedure is known as conflict resolution algorithm and it is a key technology in the RFID system. In this paper, we proposed a variable bits M-ary QT algorithm based on Manchester coding techniques. The proposed algorithm use the location information of the collision bits in the reader and tags. The proposed algorithm can reduce the number of the query-response cycle because it is capable of recognizing discontinuous bits and a variable number of bits. From computer simulation, the proposed method give better performance than the conventional M-ary QT techniques in terms of response, recognition efficiency, communication overhead.