In this paper a new hybrid wireless access system incorporating high bandwidth line-of-sight free space optical wireless and radio frequency localization is proposed and demonstrated. This system is capable of supporting several gigabits/second up-stream and down-stream data transmission and ideally suited for high bandwidth indoor applications such as personal area networks. A radio frequency signal is used to achieve localization of subscribers, offering limited mobility to subscribers within a practical office scenario. Even with the modest transmitted power of 5 dBm, we demonstrate satisfactory performance of bit error rates better than 10(-9) over the entire room in the presence of strong background light. Using simulations, the effectiveness of the proposed system architecture is investigated and the key performance trade-offs identified. Proof-of-concept experiments have also been carried out to validate simulation model, and initial experimental results successfully demonstrate the feasibility of the system capable of supporting 2.5 Gbps over a 1-2 m optical wireless link (limited by the length of the sliding rail used in the experiment) with a 45 degrees diffused beam in an indoor environment for the first time.