We propose a new Connected Dominating Set (CDS) based algorithm for clustering in Mobile Ad hoc Networks (MANETs). Our algorithm is based on Wu and Li’s [14] algorithm, however we provide significant modifications by considering the degrees of the nodes during marking process and also provide further heuristics to determine the color of a node in the initial phase. We describe, analyze and measure performance of this new algorithm by simulation and show that it performs better than Wu and Li’s [14] algorithm especially in the case of dense networks.