Phosphorylation of the src gene product pp6Ov-src was studied in plasma menmbrane fractions prepared from Rous sarcoma virus-transformed vole cells. Upon addition of [.y-32P]ATP to isolated membrane vesicles, phosphate was incorporated into a 60,000-dalton polypeptide identified as pp60vsrc. In the presence of vanadate, pp60v-src phosphorylation was stimulated ca. 30-fold. At low concentrations of ATP (1 ,uM), this reaction occurred almost exclusively on the carboxy-terminal 26,000-dalton region of pp6v-src. However, at higher ATP concentrations (100 ,uM), additional sites of phosphorylation were evident in the amino-terminal 34,000-dalton region. Kinetic analyses, performed under conditions in which ATP hydrolysis was minimal, revealed that the phosphorylation reaction at the carboxy terminus exhibited a higher Vmax and a lower Km for ATP than those occurring at the amino terminus. In addition, the amino-terminal region of pp6Ov-sc was more rapidly dephosphorylated than the carboxy-terminal region. These results indicate that interaction of pp6Ov-src with the plasma membrane may limit the extent of amino-terminal phosphorylation by lowering the rate of the reaction and the affinity for the substrate while increasing its susceptibility to phosphoprotein phosphatases. We suggest that the use of transformed-cell membrane preparations provides a model system for studying the possible regulatory roles of phosphorylation and dephosphorylation on pp60v-src function.Cellular transformation by Rous sarcoma virus (RSV) is mediated by the expression of the viral src gene product pp60v-src (21). This 60,000-dalton polypeptide (2, 14, 31, 32) exhibits protein kinase activity specific for tyrosine residues and is itself a phosphoprotein (7,8,15,18,22,28,29). Studies of pp6Ov-src immunoprecipitated from RSV-infected cells have identified a serine residue in amino-terminal region of the molecule (Ser-17) and a tyrosine residue in the carboxy-terminal domain (Tyr-416) as the major sites of phosphorylation (6,36,39). Phosphorylation of Ser-17 is mediated by a cyclic AMP-dependent protein kinase, whereas the carboxy-terminal tyrosine phosphorylation occurs through a cyclic AMP-independent reaction (6). The phosphorylation of Tyr-416 probably represents pp6Ov-src autophophorylation, since it occurs when purified preparations of pp60vsrc are phosphorylated in vitro (20,30). Interestingly, upon addition of increasing concentrations of ATP, additional sites of tyrosine phosphorylation in the amino-terminal region of pp60v-src have been observed (1,9,20). Since these sites had not been identified in in vivo-labeled cells, their physiological significance was unclear.Biochemical and cytological investigations have established that a significant fraction of the pp6Ov-src in transformed cells is associated with the plasma membrane (11,23,25,26,33) through a domain near the amino terminus (12, 24). There is a strong correlation between membrane association of pp6Ov-src and expression of cellular transformation parameters (10,17,24). Initi...