The formation of an active dinitrogenase requires the synthesis and the insertion of the iron-molybdenum cofactor (FeMo-co) into a presynthesized apodinitrogenase. In Azotobacter vinelandii, NafY (also known as ␥ protein) has been proposed to be a FeMo-co insertase because of its ability to bind FeMo-co and apodinitrogenase. Here we report the purification and biochemical characterization of NafY and reach the following conclusions. First, NafY is a 26-kDa monomeric protein that binds one molecule of FeMo-co with very high affinity (K d Ϸ 60 nM); second, the NafY-FeMo-co complex exhibits a S ؍ 3/2 EPR signal with features similar to the signals for extracted FeMo-co and the M center of dinitrogenase; third, site-directed mutagenesis of nafY indicates that the His 121 residue of NafY is involved in cofactor binding; and fourth, NafY binding to apodinitrogenase or to FeMo-co does not require the presence of any additional protein. In addition, we have obtained evidence that suggests the ability of NafY to bind NifB-co, an FeS cluster of unknown structure that is a biosynthetic precursor to FeMo-co.Nitrogenase catalyzes the reduction of nitrogen gas to ammonium in an ATP-and reductant-dependent reaction. It is one of the best characterized metalloenzymes and is an excellent model for elucidating metalloprotein assembly. Nitrogenase is composed of two oxygen-labile metalloproteins: dinitrogenase and dinitrogenase reductase (1, 2). Dinitrogenase (also termed component I or iron-molybdenum protein) is a 240-kDa ␣ 2  2 tetramer of the nifD and nifK gene products (3, 4). Each ␣ nitrogenase dimer contains an iron-molybdenum cofactor (FeMo-co) 1 and a P cluster (4, 5). Dinitrogenase reductase (also termed component II or iron protein) is a 60-kDa ␣ 2 dimer of the nifH gene product that contains a single 4Fe-4S center coordinated between the two subunits (6). In contrast to the ␣ 2  2 subunit composition of the mature dinitrogenase, apodinitrogenase (FeMo-co-deficient) from Klebsiella pneumoniae or Azotobacter vinelandii strains with mutations in nifB, nifN, or nifE have a hexameric composition (␣ 2