According to one aspect of the teachings herein, a wireless communication network sends Interference Mitigation, IM, configuration information to a User Equipment, UE, or other wireless device operating in the network. The IM configuration information indicates a selected IM mode or mode. The IM modes differ with respect to the amount of network assistance required. Advantageously, IM mode selection by the network is based on obtaining capability information for the wireless device, indicating which IM modes are supported by the wireless device, and is further based on evaluating one or more operating parameters, such as network loading or resource availability and signal quality at the wireless device. From among the IM modes supported by the wireless device, the network selects the mode(s) that best complement current operating conditions, and the wireless device in turn restricts its operation to the selected IM modes.