A terminal-based dynamic clustering algorithm is proposed in a multi-cell scenario, where the user could select the cooperative BSs from the predetermined static base stations (BSs) set based on dynamic channel condition. First, the user transmission rate is derived based on linear precoding and per-cell feedback scheme. Then, the dynamic clustering algorithm can be implemented based on two criteria: (a) the transmission rate should meet the user requirement for quality of service (QoS); (b) the rate increment exceeds the predetermined constant threshold. By adopting random vector quantization (RVQ), the optimized number of cooperative BSs and the corresponding channel conditions are presented respectively. Numerical results are given and show that the performance of the proposed method can improve the system resources utilization effectively.