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Here, in this paper we are introducing a dynamic clustering algorithm using fuzzy c-mean clustering algorithm. We will try to process several sets patterns together to find a common structure. The structure is finalized by interchanging prototypes of the given data and by moving the prototypes of the subsequent clusters toward each other. In regular FCM clustering algorithm, fixed numbers of clusters are chosen and those are pre-defined. If, in case, the number of chosen clusters is wrong, then the final result will degrade the purity of the cluster. In our proposed algorithm this drawback will be overcome by using dynamic clustering architecture. Here we will take fixed number of clusters in the beginning but on iterations the algorithm will increase the number of clusters automatically depending on the nature and type of data, which will increase the purity of the result at the end. A detailed clustering algorithm is developed on a basis of the standard FCM method and will be illustrated by means of numeric examples.