Wireless Local Area Network (WLAN) IEEE 802.11 finds extensive application in hand held devices but has issues of power consumption which is a serious issue as most of the devices run on battery. The challenge of reducing power consumption is addressed in this paper. To provide better efficiency the concept of clustering is used to form Personal Area Network. One node in the cluster with the maximum bandwidth will be elected as the Cluster Head and rest of the nodes will act as regular nodes. The regular nodes within the same cluster communicate via the Bluetooth interface which requires lower power and when communication is needed across the cluster then the Cluster Head will act as a gateway to provide the communication using WLAN interface.