There have been various navigation and tracking systems being developed with the help of technologies like GPS, GSM, Bluetooth, IR, Wi-Fi and Radar. Outdoor positioning systems have been deployed quite successfully using GPS but positioning systems for indoor environments still do not have widespread deployment due to various reasons. Most of these use only a single technology for positioning but using more than one in cooperation with each other is always advantageous for obtaining greater accuracy. Particularly, the ones which use Bluetooth are better since they would enhance the scalability of such a system because of the fact that this technology is in use by the common people so it would always be easy to track them. Moreover it would also reduce the hardware installation cost to some extent. The system that has been introduced here uses Bluetooth primarily for positioning and tracking in combination with Wi-Fi access points. The reason that makes the commercial application of such a system easier and cheaper is that most of the localized areas today like college campus, offices are being provided with internet connectivity using these access points.