Location information in Mobile Ad Hoc Networks (MANETs) provides efficiency to uni-cast and multi-cast algorithms. This paper proposes a new location update algorithm called PLU. The essence of PLU lies in the integration of location prediction and one-hop broadcasting of location update packets. The full PLU algorithm and its associated data structure are described in the paper. The simulation results have shown an improved performance of PLU thanks to its newly introduced type of updates where location prediction is applied to reduce the number of packets or bytes transmitted for location update purpose whereas keeping a high accuracy level of location information.