A bacterial strain capable of producing phytase enzyme was isolated from dried poultry litter and identified as a gram negative bacterium that belongs to Enterobacter species. The result showed that isolated organism produced around 27 mm clear halo zone on solid phytase screening media with an activity of 590 U/ml. The enzyme is produced extracellularly in the late exponential growth phase. Important physical and nutritional parameters such as different temperature, pH, carbon, nitrogen and phosphorus sources required for optimal enzyme production was analysed. Maximum production of phytase enzyme was obtained when the medium was supplemented with 1% sucrose, 0.5% yeast extract at 35°C of pH 5.5 in the culture media. Phosphate supplementation had negative effect on phytase production.