A method and apparatus for allocating frequency resources for peer to peer (P2P) communication between terminals without a base station are provided. The method determines resources used for a direct communication between two terminals in a communication system. The method includes determining uplink frequency resources of a cellular communication system for use in the direct communication between the two terminals, determining a primary maximum transmission power to minimize interference caused by the direct communication on the cellular communication system and performing the direct communication between the two terminals by using the uplink frequency resources and a transmission power less than the determined primary maximum transmission power.