Objectives: An algorithm is proposed to allocate the scan cells to form a particular set of scan chains. The proposed algorithm reduces wire length and number of multi-voltage cells. This also maintains the balance of the chain. Methods: The proposed algorithm was implemented in Tool Command Language (TCL) and it works on the post placed database. The developed algorithm was tested on some of the industrial designs. Findings: The proposed algorithm was tested on some of the industrial designs and a reduction was observed in the scan chains wire length (about 10%) and a much greater reduction in the count of the lockup latches (about 90%). Improvements/Applications: This will ensure a reduction in congestion as well as reduced area requirements.