  Standard jet finding techniques used in elementary particle collisions have
not been successful in the high track density of heavy-ion collisions. This
paper describes a modified cone-type jet finding algorithm developed for the
complex environment of heavy-ion collisions. The primary modification to the
algorithm is the evaluation and subtraction of the large background energy,
arising from uncorrelated soft hadrons, in each collision. A detailed analysis
of the background energy and its event-by-event fluctuations has been performed
on simulated data, and a method developed to estimate the background energy
inside the jet cone from the measured energy outside the cone on an
event-by-event basis. The algorithm has been tested using Monte-Carlo
simulations of Pb+Pb collisions at $\sqrt{s}=5.5$ TeV for the ALICE detector at
the LHC. The algorithm can reconstruct jets with a transverse energy of 50 GeV
and above with an energy resolution of $\sim30%$.
