We have shown previously (Nishimura, M., Fedorov, S., and Uyeda, K. (1994) (J. Biol. Chem. 269, 26100 -26106) that the administration of high concentrations of glucose stimulates dephosphorylation of Fru-6-P,2-kinase: Fru-2,6-bisphosphatase in perfused liver, and xylulose (Xu) 5-P activates the dephosphorylation reaction. To characterize the protein phosphatase, we have purified the Xu 5-P-activated protein phosphatase to homogeneity from livers of rats injected with high glucose. Several protein phosphatases in the livers were separated by DEAE-cellulose chromatography, but only one peak of the enzyme was activated by Xu 5-P. The protein phosphatase was inhibited by okadaic acid (IC 50 ؍ 1-3 nM) and did not require Mg 2؉ or Ca 2؉ , suggesting that the enzyme was type 2A. The enzyme was a heterotrimer (M r ؍ 150,000) and consisted of structural (A, 65 kDa), catalytic (C, 36 kDa), and regulatory (B, 52 kDa) subunits. Amino acid sequences of five tryptic peptides derived from the B subunit showed similarity with those of the B␣ isoform of rat protein phosphatase 2A, but five out of 73 residues were different. The protein phosphatase catalyzed dephosphorylation of Fru-6-P,2-kinase:Fru-2,6-Pase, phosphorylase a, and pyruvate kinase, and the K m values were 0.8 M, 3.7 M, and 2.2 M, respectively. Among these substrates dephosphorylation of only the bifunctional enzyme was activated by Xu 5-P, and the K a value for Xu 5-P was 20 M. Xu 5-P was the only sugar phosphate which activated the PP2A among all the sugar phosphates examined.These results demonstrated the existence and isolation of a unique heterotrimeric protein phosphatase 2A in rat liver which catalyzed the dephosphorylation of Fru-6-P,2-kinase:Fru-2,6-Pase and was activated specifically by Xu 5-P. The Xu 5-P-activated protein phosphatase 2A explains the increased Fru 2,6-P 2 level in liver after high glucose administration.Many cellular processes and signaling transductions are controlled by reversible phosphorylation of proteins. Fru 2,6-P 2 1 is the most potent activator of phosphofructokinase and plays an important role in regulation of glycolysis, especially in liver (reviewed in Ref. 1). Synthesis and degradation of Fru 2,6-P 2 are catalyzed by a bifunctional enzyme, Fru-6-P,2-kinase:Fru-2,6-bisphosphatase. Liver Fru-6-P,2-kinase:Fru-2,6-Pase is phosphorylated by cAMP-dependent protein kinase (2-4). When blood glucose level falls, glucagon level increases which raises the cAMP level in hepatic cells. The elevated cAMP activates cAMP-dependent protein kinase, which phosphorylates Fru-6-P,2-kinase:Fru-2,6-Pase, leading to the inhibition of Fru-6-P,2-kinase and the activation of Fru-2,6-Pase. This results in a rapid decrease in Fru 2,6-P 2 , inhibition of phosphofructokinase and glycolysis, and activation of gluconeogenesis. Mechanism for regulation of the dephosphorylation of Fru-6-P,2-kinase:Fru-2,6-Pase remains unclear. Pelech et al. (5) sought to identify the nature of protein phosphatases in liver involved in dephosphorylation of some of the known ...