For a system providing coexistence between a WPAN coordinator and WLAN Access Point (AP), the WPAN coordinator requests WLAN AP for WPAN operation in a selected WLAN channel. The WLAN AP responds with the allocated time limit for which the WPAN operation can be performed. After expiration of the allocated time limit, the WPAN coordinator relinquishes the channel to the WLAN AP. A method addresses the operation of the WPAN system in 2.4 GHz ISM band when a non-overlapping WPAN channel selection is infeasible.