A processor-implemented method for improving Wi-Fi performance in co-existing communication networks, comprising: sensing a plurality of inputs associated with a wireless signal in a co-existing communication network via one or more hardware processors, the plurality of inputs comprises a current transmission channel for the wireless signal, a list of all available channels in the co-existing communication network, the signal strength, and including further inputs, comprising a throughput tolerance range, ζ, a classification energy threshold, γ, an energy detection threshold, a carrier sensitivity threshold and a target throughput,ThrTargetWiFi,, wherein the energy detection threshold and the carrier sensitivity threshold are standard values pre-defined by the IEEE 802.11 specification and the throughput tolerance range, ζ, the classification energy threshold, γ, and the target throughput, ThrTargetWiFi, are defined based on a user requirement; detecting an interfering channel for the wireless signal, via the one or more hardware processors, based on the classification energy threshold, γ, the energy detection threshold and the carrier sensitivity threshold, wherein the interfering channel is causing an interference in performance of the wireless signal; classifying the interfering channel, via the one or more hardware processors, based on the classification energy threshold, γ, the energy detection threshold and the carrier sensitivity threshold, wherein the classification includes a high interference channel, a moderate interference channel and low interference channel; assigning a channel state to the classified interfering channel, via the one or more hardware processors, wherein the channel state includes one of a busy channel state or an idle channel state; identifying an optimal channel based on the channel state, via the one or more hardware processors, using an optimization technique, wherein the optimal channel is identified for the channel state that is assigned the busy channel state; and switching transmission of the wireless signal to the optimal channel from the current transmission channel to the optimal channel via the one or more hardware processors, using a frequency hopping technique, wherein the optimal channel enables improved Wi-Fi performance in the co-existing communication network by offering interference free transmission in the co-existing communication network. sensing a plurality of inputs associated with a wireless signal in a co-existing communication network via one or more hardware processors, the plurality of inputs comprises a current transmission channel for the wireless signal, a list of all available channels in the co-existing communication network, the signal strength, and including further inputs, comprising a throughput tolerance range, ζ, a classification energy threshold, γ, an energy detection threshold, a carrier sensitivity threshold and a target throughput,ThrTargetWiFi,, wherein the energy detection threshold and the carrier sensitivity threshold are standard values pre-defined by the IEEE 802.11 specification and the throughput tolerance range, ζ, the classification energy threshold, γ, and the target throughput, ThrTargetWiFi, are defined based on a user requirement; detecting an interfering channel for the wireless signal, via the one or more hardware processors, based on the classification energy threshold, γ, the energy detection threshold and the carrier sensitivity threshold, wherein the interfering channel is causing an interference in performance of the wireless signal; classifying the interfering channel, via the one or more hardware processors, based on the classification energy threshold, γ, the energy detection threshold and the carrier sensitivity threshold, wherein the classification includes a high interference channel, a moderate interference channel and low interference channel; assigning a channel state to the classified interfering channel, via the one or more hardware processors, wherein the channel state includes one of a busy channel state or an idle channel state; identifying an optimal channel based on the channel state, via the one or more hardware processors, using an optimization technique, wherein the optimal channel is identified for the channel state that is assigned the busy channel state; and switching transmission of the wireless signal to the optimal channel from the current transmission channel to the optimal channel via the one or more hardware processors, using a frequency hopping technique, wherein the optimal channel enables improved Wi-Fi performance in the co-existing communication network by offering interference free transmission in the co-existing communication network.