This paper introduces an expected speed of intelligent vehicle setting algorithm called distance setting algorithm. Discrete setting algorithm and continuous setting algorithm, as conventional expected speed setting algorithm, both have problems. When the expected speed changes, the former one might cause speed oscillation and the latter one might have a delay output. Taking these problems into consideration, distance setting algorithm takes advantage of that the variation of speed is proportional to the increment of distance. This method could make a smooth speed transition and a quick adjustment to expected speed, avoiding oscillation. Experimental results show that this method has better performance than the conventional methods.