Nitrate ion (NO3−) in wastewater is a major cause of pollution in aquatic environments worldwide. Magnetospirillum gryphiswaldense (MSR-1) has a complete dissimilatory denitrification pathway, converts NO3− in water into nitrogen (N2) and simultaneously removes ammonium ions (NH4+). We investigated and confirmed direct effects of regulatory protein factors Mg2046 and MgFnr on MSR-1 denitrification pathway by EMSAs and ChIP-qPCR assays. Corresponding mutant strains were constructed. Denitrification efficiency in synthetic wastewater medium during a 12-h cell growth period was significantly higher for mutant strain Δmgfnr (0.456 mmol·L−1·h−1) than for wild-type (0.362 mmol·L−1·h−1). Presence of magnetic particles (magnetosomes) in MSR-1 greatly facilitates collection and isolation of bacterial cells (and activated sludge) by addition of a magnetic field. The easy separation of magnetotactic bacteria, such as MSR-1 and Δmgfnr, from wastewater using magnetic fields is a unique feature that makes them promising candidates for practical application in wastewater treatment and sludge pretreatment.