<P><B>Abstract</B></P> <P>A new strain SK 21.002 which could produce intracellular levansucrase was isolated from beet sugar growing soil. It was identified as <I>Bacillus methylotrophicus</I> based on the sequence analysis of the 16S rRNA and the morphological characteristic. The structure of levan biosynthesized from the levansucrase was determined to be connected through β-(2→6) linkages with fructofuranosyl residues. The molecular weight of the product was between 4 and 5kDa. The optimal conditions to produce levan using the levansucrase were studied. The presence of Mg<SUP>2+</SUP> could increase the yield of levan. The yield of levan reached about 100g/L with the enzyme under the optimum conditions.</P> <P><B>Highlights</B></P> <P> <UL> <LI> A novel strain SK 21.002 with levansucrase was isolated and identified as <I>B. methylotrophicus</I>. </LI> <LI> The biosynthesized product was identified to be levan. </LI> <LI> The biosynthesis conditions of levan were optimized. </LI> </UL> </P>