Dynamic memory management can make up to 30% of total program execution time. Object oriented languages like C++ allocate and free dynamic memory prolifically. Since computer memory is a limited resource its efficient utilization is required to minimize wastage and keep costs down. Memory management algorithms such as best fit seem to perform most efficiently in terms of space cost while simple segregated storage seems to minimize the time cost. There is a trade-off between time and space costs. We have developed a new general purpose hybrid algorithm that shows excellent performance with respect to both time and space in comparison to the Doug Lea version 2.7.0 dynamic memory allocator.