A method is provided for forming an interconnect in a semiconductor memory device. The method includes forming a pair of source select transistors on a substrate. A source region is formed in the substrate between the pair of source select transistors. A first inter-layer dielectric is formed between the pair of source select transistors. A mask layer is deposited over the pair of source select transistors and the inter-layer dielectric, where the mask layer defines a local interconnect area between the pair of source select transistors having a width less than a distance between the pair of source select transistors. The semiconductor memory device is etched to remove a portion of the first inter-layer dielectric in the local interconnect area, thereby exposing the source region. A metal contact is formed in the local interconnect area.