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The development of the security layers between the wireless terminals is one of the biggest trends in wireless communications. Bluetooth can be described as the short range and the low power supplements that holds the connection protocol through various devices. This paper presents the development of a secure wireless connection terminals on a field programmable gate array (FPGA). The wireless connection has been established using Bluetooth technology and the initialisation of a secure algorithm for data exchange is implemented using the advanced encryption standards (AES). The proposed system has been validated and demonstrated using using an image processing application which involves the encryption and decryption of acquired images from the RC10 FPGA prototyping board's cam-era. The evaluation of different building block has been carried out in terms of area, resources used and power consumption.