Orthorhombic GeSe is ap romising thermoelectric material. However,l arge band gap and strong covalent bonding result in al ow thermoelectric figure of merit, zT % 0.2. Here,w ed emonstrate am aximum zT % 1.35 at 627 K in p-type polycrystalline rhombohedral (GeSe) 0.9 (AgBiTe 2 ) 0.1 , which is the highest value reported among GeSe based materials.T he rhombohedral phase is stable in ambient conditions for x = 0.8-0.29 in (GeSe) 1Àx (AgBiTe 2 ) x .T he structural transformation accompanies change from covalent bonding in orthorhombic GeSe to metavalent bonding in rhombohedral (GeSe) 1Àx (AgBiTe 2 ) x .(GeSe) 0.9 (AgBiTe 2 ) 0.1 has closely lying primary and secondary valence bands (within 0.25-0.30 eV), which results in high power factor 12.8 mWcm À1 K À2 at 627 K. It also exhibits intrinsically low lattice thermal conductivity (0.38 Wm À1 K À1 at 578 K). Theoretical phonon dispersion calculations reveal vicinity of aferroelectric instability,with large anomalous Born effective charges and high optical dielectric constant, which, in concurrence with high effective coordination number,l ow band gap and moderate electrical conductivity,corroborate metavalent bonding in (GeSe) 0.9 (AgBiTe 2 ) 0.1 .W econfirmed the presence of low energy phonon modes and local ferroelectric domains using heat capacity measurement (3-30 K) and switching spectroscopyinpiezoresponse force microscopy, respectively.