Sewage sludge (SS) can be used as an alternative fertilizer in agriculture. It is normally broadcasted and plowed into soil, but it is not clear if it has a potential as a placement fertilizer. A rhizobox experiment was conducted to investigate the placement effect of SS and mineral nitrogen (N) fertilizer on shoot and root growth as well as nutrient uptake of spring wheat (Triticum aestivum L.). The treatments included localized SS, mixed SS, localized SS and ammonium, localized ammonium, and a control without addition of SS and ammonium to examine the effect of SS placement and, further, if ammonium co-localization would enhance the placement effect. The results show that SS fertilization improved soil N and P availability, which significantly increased plant N and P uptake and enhanced shoot growth, while root length was significantly reduced compared to the control. Localized SS increased root proliferation in the placement region, resulting in enhanced uptake of P from the SS patch compared to homogenous application. However, co-localized application of ammonium with SS significantly depressed plant shoot and root growth. Localized ammonium markedly restricted root proliferation in the placement region and reduced soil pH in both bulk soil and placement region, contributing to decreased nutrient uptake and plant growth.