An agar degrading bacterium Micrococcus luteus F2 was isolated from river water. The identification of strain done by partial 16S-rRNA sequencing. This organism produced agarase enzyme and degrade agar at 37˚C, pH 5.0. Highest activity obtained 0.203 U/ml at 37˚C, 0.16 U/ml at 0.5% agar concentration, 0.136 U/ml at pH 5.0, and 0.10 U/ml at 0.09% NaCl concentration. The enzyme agarase produced by this strain was partially purified by ammonium sulphate precipitation and dialysis. It gave 1.14 fold and 1.049 fold purification in 70% and 80% saturation respectively.