The unbalanced usage of resources in cloud data centers cause an enormous amount of power consumption. The Virtual Machine (VM) consolidation shuts the underutilized hosts and makes the overloaded hosts as normally loaded hosts by selecting appropriate VMs from the hosts and migrates them to other hosts in such a way to reduce the energy consumption and to improve physical resource utilization. Efficient method is needed for VM selection and destination hosts selection (VM placement). In this paper, a CPU-Memory aware VM placement algorithm is proposed for selecting suitable destination host for migration. The VMs are selected using Fuzzy Soft Set (FSS) method VM selection algorithm. The proposed placement algorithm considers both CPU, Memory, and combination of CPU-Memory utilization of VMs on the source host. The proposed method is experimentally compared with several existing selection and placement algorithms and the results show that the proposed consolidation method performs better than existing algorithms in terms of energy efficiency, energy consumption, SLA violation rate, and number of VM migrations.