A method of phasing the opening and closing of internal combustion engine intake and exhaust valves relative to the rotation of the crankshaft is based upon changes in engine speed, engine load and ambient relative humidity. During certain conditions of higher humidity, in order to maintain good combustion stability and thus overall engine operation, it is necessary to reduce intake and exhaust valve overlap by adjusting the phase of the intake and exhaust camshafts. This is achieved by utilizing a set of cam position reference values and constraints based upon engine speed, engine load and humidity that are contained in lookup tables that adjust and limit cam position and valve overlap. Generally speaking, in order to maintain optimum engine performance, intake and exhaust valve overlap is reduced with higher ambient humidity and vice versa.