Embodiment herein provide a method and system of reporting cluster specific CSI feedback by user equipment (UE) to a cloud system. The UE associates with the cloud using a biased association or an unbiased association. In a biased association, a ratio between the highest received power from a Macro BS and a Pico base station is determined by the UE and compared with a threshold (bias). If the ratio is greater than the bias, the UE associates with the Pico BS. The UE reports CSI for a set of dominant Macro BSs and Pico BSs within a cluster. The UE can report the IDs of the BSs which contribute to dominant interference caused by the BSs of neighboring clusters.