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An apparatus and a method for generation of channel state information in a wireless communication system are provided. The method includes transmitting, by an evolved Node B (eNB), a first reference signal to a plurality of User Equipments (UEs), receiving channel state information generated based on the first reference signal from the plurality of UEs, selecting candidate UEs to which wireless resources are to be allocated and transmitting second reference signals to the selected candidate UEs, receiving channel state information generated based on the second reference signals from the candidate UEs, and selecting final UEs, to which wireless resources are to be allocated, from the candidate UEs based on the channel state information generated based on the second reference signals, and transmitting control information for data reception to the selected final UEs.