Microalgae are photosynthetic microorganisms and are considered excellent candidates for a wide range of biotechnological applications, including the removal of nutrients from urban wastewaters, which they can recover and convert into biomass. Microalgae-based systems can be integrated into conventional urban wastewater treatment plants (WW-TP) to improve the water depuration process. However, microalgal strain selection represents a crucial step for effective phytoremediation. In this work, a microalga isolated from the effluent derived from the thickening stage of waste sludge of an urban WW-TP was selected and tested to highlight its potential for nutrient removal. Ammonium and phosphate abatements by microalgae were evaluated using both the effluent and a synthetic medium in a comparative approach. Parallelly, the isolate was characterized in terms of growth capability, morphology, photosynthetic pigment content and photosystem II maximum quantum yield. The isolated microalga showed surprisingly high biomass yield and removal efficiency of both ammonium and phosphate ions from the effluent but not from the synthetic medium. This suggests its clear preference to grow in the effluent, linked to the overall characteristics of this matrix. Moreover, biomass from microalgae cultivated in wastewater was enriched in photosynthetic pigments, polyphosphates, proteins and starch, but not lipids, suggesting its possible use as a biofertilizer.