Urethane, a cancer-causing chemical, was reported to contaminate alcoholic beverages such as whisky, liquor, wine and sake. Enzymatic removal of urethane would be a possible approach to remove this potentially hazardous chemical from alcoholic beverages. We found that Citrobacter sp. isolated from mouse feces stoichiometrically decomposed urethane to ethanol and ammonia. We named this enzyme "urethanase." Partially purified urethanase could hydrolyze several carbamates and some amides. However, urea, N-alkyl ureas and ethyl esters of organic acids were not hydrolyzed at all. These results suggest that urethanase belongs to the category of amidase. The enzyme was inactive in high concentrations of alcohol and at acidic pH and was practically ineffective for the elimination of urethane from alcoholic beverages.