This paper deals with the development of an intelligent algorithm for nesting of irregular shaped sheet metal blanks with varying blank geometries. A nesting algorithm has been developed by incorporating a new sliding technique in order to find all the feasible arrangements in such a manner that two arbitrary blanks do not overlap or intersect. The algorithm considers the constraints of sheet metal stamping operation like bridge width and grain orientation and also satisfies the design requirements such as maximizing the strength of the blank when bending is involved as a subsequent operation. The algorithm is designed in such a way that it automatically stops a search for the optimal cluster and also minimizes the computation time based on heuristics incorporated.