A system and method of intelligent navigation with collision avoidance for a vehicle is provided. The system includes a global positioning system and a vehicle navigation means in communication with the global positioning system. The system also includes a centrally located processor in communication with the navigation means, and an information database associated with the controller, for identifying a location of a first vehicle and a second vehicle. The system further includes an alert means for transmitting an alert message to the vehicle operator regarding a collision with a second vehicle. The method includes the steps of determining a geographic location of a first vehicle and a second vehicle within an environment using the global positioning system on the first vehicle and the global positioning system on the second vehicle, and modeling a collision avoidance domain of the environment of the first vehicle as a discrete state space Markov Decision Process. The methodology scales down the model of the collision avoidance domain, and determines an optimal value function and control policy that solves the scaled down collision avoidance domain. The methodology extracts a basis function from the optimal value function, scales up the extracted basis function to represent the unscaled domain, and determines an approximate solution to the control policy by solving the rescaled domain using the scaled up basis function. The methodology further uses the solution to determine if the second vehicle may collide with the first vehicle and transmits a message to the user notification device.