Abstract: Cloud computing has enabled a pay-per-use model where anything is available anywhere as a service. While service provisioning requires no manual intervention the automated establishment of Service Level Agreement (SLA) which determines the Quality-of-Service (QoS) is still a challenge. This is mainly because of the complex decision making involved in automated negotiation of QoS parameters. Automated negotiation involves two or more self-interested agents negotiating with each other to agree upon a set of QoS parameters. The success of an automated negotiation system lies in the negotiation strategy that an agent adopts to generate counter-offers. In this research, we propose the architecture of an SLA management system. We analyze the properties of linear utility functions and propose an algorithm for generation of counter-offers that are more acceptable to the opponent.