Three-dimensional topological insulators (TIs) have emerged as a unique state of quantum matter and generated enormous interests in condensed matter physics. The surfaces of a three dimensional (3D) TI are composed of a massless Dirac cone, which is characterized by the Z2 topological invariant. Introduction of magnetism on the surface of TI is essential to realize the quantum anomalous Hall effect (QAHE) and other novel magneto-electric phenomena. Here, by using a combination of first principles calculations, magneto-transport, angle-resolved photoemission spectroscopy (ARPES), and time resolved ARPES (tr-ARPES), we study the electronic properties of Gadolinium (Gd) doped Sb2Te3. Our study shows that Gd doped Sb2Te3 is a spin-orbit-induced bulk band-gap material, whose surface is characterized by a single topological surface state. We further demonstrate that introducing diluted 4f-electron magnetism into the Sb2Te3 topological insulator system by the Gd doping creates surface magnetism in this system. Our results provide a new platform to investigate the interaction between dilute magnetism and topology in doped topological materials.