The present invention discloses a method and system of cooperative data relay in a wireless mesh network. The system comprises at least one multi-hop relay base station (MR- BS) (100) and a plurality of relay station (RS) (200) which are configured to support mesh connections. The method in accordance with the preferred embodiments of the present invention provides capabilities to enable optimal data transmission by way of cooperative relay between the relay stations (RS) (200). Data transmission is initiated upon established the optimized multiple paths with respect to the relay stations (RS) (200). The determination of the optimized multiple paths is based the details of relays stations (RS) (200) provided to the reference table and centralized scheduling at the multi-hop relay station (MR-BS) (100). The reference table and centralized scheduling include, but not limiting to, all details and status pertaining to the plurality of relay stations (RS) (200) within the network, network condition and traffic type.