Over-the-air channel power measurements using Agilent 8960 to model indoor propagation channel is presented in this paper. A transmission bandwidth and frequency of 3.84MHz and 896MHz respectively were selected for the measurements. All experiments were conducted in the mobile and wireless communications research laboratory at University of Greenwich. Channel power measurements along with the other measurement data were directly logged onto a PC/laptop using an Agilent data acquisition system and Matlab. A new indoor channel propagation model is proposed in this paper by analysing channel measurements from Agilent 8960. We considered Rayleigh, Rician, Nakagami and Weibull distribution as potential distribution of channel gain amplitudes and concluded Weibull distribution is the best fit for the measured data. \textcopyright 2013 IEEE.