A method and apparatus are disclosed. In an example from the perspective of a User Equipment (UE), the UE keeps a dedicated Preconfigured Uplink Resources (PUR) configuration when the UE is in Radio Resource Control (RRC) idle state and a serving cell of the UE is a second cell, wherein the UE is configured with the dedicated PUR configuration in a first cell different than the second cell. The UE selects a third cell during a RRC connection re-establishment procedure. In response to the selecting the third cell, the UE determines whether or not to release the dedicated PUR configuration based upon whether or not the third cell is the same as the first cell, wherein the determining whether or not to release the dedicated PUR configuration is performed when the UE is in RRC connected state.