System and method for hybrid positioning using blended Wi-Fi and GNSS solution is presented, which provides an overall good positioning accuracy as compared to feed forward blending solution. Feeding back Wi-Fi and GNSS blended solutions to replace position states in GNSS enables blended solution to improve using past Wi-Fi information and also enables early correction of GPS drifts in urban canyons. Smart blending prevents early degradation of blended solution due to bad Wi-Fi information. Additionally, it gives good performance in open sky and mild urban canyons where GPS performance is generally quite good. Constrained blending enables good blending even with dependent or clustered Wi-Fi positions. It also keeps feedback loop stable by limiting changes to a blended solution.