In this paper, we propose new scheme for an optimum location for Relay Node (RN) in LTE-A cellular network to enhance the capacity at cell edge based on modified Shannon capacity for LTE networks. The proposed approach mitigates interferences between the nodes and ensures optimum utilization of transmitted power. In addition, this papers the mathematical derivation of optimal number of RNs per cell to prevent the overlapping between neighbouring RNs meanwhile providing the best coverage. Mathematical results are validated by Simulation results and indicate an improvement in capacity for users at the cell edge from 0.6 b/s/Hz to 1.45 b/s/Hz and 40% increment from all cell capacity. Moreover, a gain about 8 dBm and 25 dBm is observed for users at the cell edge for uplink and downlink in the received signal respectively. It has been concluded from the numerical analysis which is conducted on limited interferences for all nodes (in-band and out-band) provides simplicity and ease in implementation by the RF planning designers.