Disclosed herein is a method and system for establishing a local conferencing session amongst a plurality of Bluetooth enabled terminal units. An audio gateway is provided to interconnect a voice network and the terminal units. A session management entity is provided on the audio gateway and each of the terminal units. A local conferencing session setup is established prior to the conference session wherein a set of common session parameters is shared among the audio gateway and the terminal units through the respective session management entities. The common session parameters enable Bluetooth communication between the audio gateway and the terminal units. The audio gateway broadcasts the voice packets from the voice network to the terminal units. The audio gateway provides microphone holder rights to a terminal unit to transfer voice packets to the voice network. Further, the audio gateway coordinates the transfer of microphone rights between the terminal units.