This　paper　proposes　a　distributed　relay　and　modulation　and　coding　scheme　(MCS)　selection　in　wireless　cooperative　relaying　networks　where　the　adaptive　modulation　and　coding　(AMC)　scheme　is　applied.　First-order　finite-state　Markov　channels　(FSMCs)　are　used　to　model　the　wireless　channels　and　make　prediction.　The　objective　of　the　relay　policy　is　to　select　one　relay　and　MCS　among　different　alternatives　in　each　time-slot　according　to　their　channel　state　information　(CSI)　with　the　goal　of　maximizing　the　throughput　of　the　whole　transmission　period.　The　procedure　of　relay　and　MCS　selection　can　be　formulated　as　a　discounted　Markov　decision　chain,　and　the　relay　policy　can　be　obtained　with　recent　advances　in　stochastic　control　algorithms.　Simulation　results　are　presented　to　show　the　effectiveness　of　the　proposed　scheme.　©　2011　The　Journal　of　China　Universities　of　Posts　and　Telecommunications.