A collated wireless local area network/Bluetooth (WLAN/BT) device avoids radio interference between the two wireless systems by collaborative coexistence mechanisms. The collocated WLAN/BT device and coexistence methods include time division multiplexing based on various operating states of the collocated WLAN and BT systems, respectively. Such operating states include the transmission of low priority WLAN and BT data signals during WLAN and BT periods, the sleep mode of the collocated WLAN system, transmission of high priority data signals from the collocated BT system during time division multiplexed WLAN and BT periods, the transition of the collocated BT system from an active state to an idle state, and the transition of the collocated WLAN system from an active state to an idle state.