Because of the gains like diversity, throughput, and the coverage extension provided by the multiple-input multiple-out (MIMO) systems, it has been part of the various wireless communications standards. However, to reap the benefits offered by MIMO systems in size-constrained nodes, used in wireless communications, has been a challenging issue. To address this challenge, cooperative communications has been introduced as an implementable way to exploit the multi-antenna (MIMO) gains in small size nodes. Various schemes or protocols have been devised to address the way by which cooperative communications actually takes place. In this article, we propose and investigate a novel scheme which provides a way to combine the benefits of space-time codes and network coding for cooperative communications. In this scheme, the cooperating users using space-time codes are assisted by the availability of a fixed relay node proposed for the future wireless networks. We compare our scheme with cooperative communications using Alamouti scheme and non-cooperative communications. With analytical results, we prove that the proposed scheme offers diversity gain of order three while cooperative communications using Alamouti scheme offers two and non-cooperative communications offers diversity order of one only. Moreover, the proposed relay assisted scheme outperforms by 15% in terms of multiplexing gain, the cooperative communications scheme being compared.