A method and an apparatus for treating organic wastewater and sludge which remarkably reduce the generated amount of sludge at a much lower running cost, and which reduce the size and the capacity of the solubilization tank. The method and apparatus for treating sludge employs a biological treatment system, wherein a biological treatment of wastewater is carried out, and a solid-liquid separation unit for separating a solid from a liquid in the wastewater after the biological treatment, to obtain a treated wastewater and a sludge. The apparatus has a means for obtaining a withdrawn sludge from a part of the sludge and an alkali-treatment tank, wherein an alkali-treatment of the withdrawn sludge is carried out. The apparatus also has a biological solubilization tank which solubilizes the sludge after the alkali-treatment under an anaerobic, anoxic or microaerophilic condition, and a means for recycling the solubilized sludge to the biological treatment system.