Addition of iron (III) hydroxide during methanogenic digestion of active sludge by anaerobic sludge displaying an iron-reducing activity resulted in a microbial reduction of iron (III) with formation of iron (II), capable of precipitating phosphates. Feasibility of eliminating 66.6 to 99.6% of dissolved phosphate at initial concentrations of 1000 to 3500 mg PO4(3-)/l by adding 6420 mg/l iron (III) hydroxide into a reactor for anaerobic fermentation of active sludge. The optimal ratio of iron (III) added to dissolved phosphate eliminated (mg) providing a 95% elimination amounted to 2:1. These results may be used in a new technology for anaerobic wastewater treatment with phosphate elimination.