Abstract: A recombinant microorganism is provided herein, in particular, a recombinant microorganism of the Azotobacteraceae family. The recombinant Azotobacter microorganism is capable of fixing atmospheric nitrogen continuously in the presence of oxygen and externally fixed nitrogen sources. The present invention further provides a process for production of the recombinant microorganism and a composition comprising the recombinant microorganism for use as biofertilizers and/or for use in the preparation of a fertilizer composition. The recombinant microorganism produced by this invention is an environmental friendly, highly beneficial microorganism.