The innovative process consists of biological unit for wastewater treatment and ozonation unit for excess sludge treatment. An aerobic membrane bioreactor(MBR) was used to remove organics and nitrogen, and an anaerobic reactor was added to the biological unit for the release of phosphorus contained at aerobic sludge to enhance the removal of phosphorus. For the excess sludge produced in the MBR, which was fed to ozone contact column and reacted with ozone, then the ozonated sludge was returned to the MBR for further biological treatment. Experimental results showed that this process could remove organics, nitrogen and phosphorus efficiently, and the removals for COD, NH3-N, TN and TP were 93.17 %, 97.57 %, 82.77 % and 79.5 %, respectively. Batch test indicated that the specific nitrification rate and specific denitrification Under the test conditions, the sludge concentration in the MBR was kept at 5000-6000 mg/L, and the wasted sludge was ozonated at an ozone dosage of 0.10 kgO3/kgSS. During the experimental period of two months, no excess sludge was wasted, and a zero withdrawal of excess sludge was implemented. Through economic analysis, it was found that an additional ozonation operating cost for treatment of both wastewater and excess sludge was only 0.045 RMB Yuan(USD 0.0054)/m3 wastewater.