The underlaying architecture of Device-to-device (D2D) communication supports direct communication between users by reusing the radio resources of the LTE-A system. Despite the co-channel interference between the conventional cellular user equipment (CUE) and the D2D communication user equipment (DUE), LTE-A system can improve the combined data rate of CUEs and DUEs through effective transmit power control and resource allocation schemes. In this paper, we propose a novel mechanism, which combines the resource allocation scheme with the transmit power control scheme to maximize the overall data rate (defined as the sum-rate in the paper). We perform system-level simulations to determine the effectiveness of the proposed mechanism in terms of increasing the sum-rate. The simulation result shows that the proposed mechanism can improve the sum-rate in an underlaying LTE-A system that supports D2D communication.