Here, a novel synthesis for near monodisperse, sub-10nm Bi2Te3 nanoparticles is reported. A new reduction route to bismuth nanoparticles is described, which are then applied as starting materials in the formation of rhombohedral Bi2Te3 nanoparticlces. After ligand removal by a novel hydrazine hydrate etching procedure, the nanoparticle powder is spark plasma sintered to a pellet with preserved crystal grain sizes. Unlike previous works on the properties of Bi2Te3 nanoparticles, the full thermoelectric characterization of such sintered pellets shows a highly reduced thermal conductivity and the same electric conductivity as bulk n-type Bi2Te3.