A superabsorbent, slow release nitrogen fertilizer (SSRNF) was prepared by inverse suspension polymerization of partially neutralized acrylic acid using N,N′‐methylene bisacrylamide as a crosslinker and ammonium persulfate as an initiator in the presence of urea. The polymer was characterized using infrared spectral analysis, and network structural parameters such as molecular weight between crosslinks (Mc) and crosslink density (q) were calculated. The effects of reaction conditions, such as reaction time, reaction temperature, initiator, crosslinker and the degree of neutralization of acrylic acid, on water absorbency were investigated. The nitrogen content of SSRNF synthesized under optimal conditions was 22.7%, and the water absorbencies were about 965 g g−1 in distilled water and 185 g g−1 in tap water. The nitrogen slow release behaviors of the SSRNF in water and water retention capacity of soil with the SSRNF were also investigated. A possible slow release mechanism was proposed and the release rate constant K and the diffusion coefficient D of urea in the hydrogel was calculated. The results showed that the product not only had good slow release properties but also excellent soil moisture preservation capacity, which could effectively improve the utilization of fertilizer and water resources simultaneously. Therefore, the SSRNF is a multifunctional water managing material, which would find application in agriculture and horticulture, especially in drought‐prone areas where the availability of water is limited. Copyright © 2006 Society of Chemical Industry