Emission of nitric oxide represents a serious environmental problem since it contributes to the formation of acid rain and photochemical smog. Potassium-modified Co-Mn-Al mixed oxide is an effective catalyst for NO decomposition. However, there are problems related to the thermal instability of potassium species and a high content of toxic and expensive cobalt. The reported research aimed to determine whether these shortcomings can be overcome by replacing cobalt with magnesium. Therefore, a series of Co-Mg-Mn-Al mixed oxides with different Co/Mg molar ratio and promoted by various content of potassium was investigated. The catalysts were thoroughly characterized by atomic absorption spectroscopy (AAS), temperature-programmed reduction by hydrogen (TPR-H2), temperature-programmed desorption of CO2 (TPD-CO2), X-ray powder diffraction (XRD), N2 physisorption, species-resolved thermal alkali desorption (SR-TAD), and tested in direct NO decomposition with and without the addition of oxygen and water vapor. Partial substitution of magnesium for cobalt did not cause an activity decrease when the optimal molar ratio of K/Co on the normalized surface area was maintained; it means that the portion of expensive and toxic cobalt can be successfully replaced by magnesium without any decrease in catalytic activity.