Methods and systems for managing relays in LTE based communication networks. Embodiments herein use of a packet handler node and an additional radio interface in the UE, enabling the creation of an overlay network on top of an existing LTE network. The overlay network helps in the transfer of data between the UE and the AS even when the UE is not directly connected to the LTE network by encapsulating the data from the out-of-coverage UE within the IP packet of at least one nearby relay UE connected to the LTE network and is then forwarded to the LTE core network. The out-of-coverage UE uses the additional radio interface to send packets to the relay UE.