A high-nitrogen ferritic heat-resisting steel with high vanadium content comprises, in weight percent, 0.01-0.30% C, 0.02-0.80% Si, 0.20-1.00% Mn, 8.00-13.00% Cr, 0.005-1.00% Mo, 0.20-1.50% W, 0.30-2.00% V, and 0.10-0.50% N and being controlled to include less than 0.020% Nb, the balance being Fe and unavoidable impurities. A method of producing the steel comprises melting and equilibrating the steel components in an atmosphere of a mixed gas of a prescribed nitrogen partial pressure or nitrogen gas and thereafter casting or solidifying the resulting melt in an atmosphere controlled to have a total pressure of not less than 2.77 bar and a nitrogen partial pressure of not less than 1.0 bar, with the relationship between the nitrogen partial pressure p and the total pressure P beingP>2.77pthereby obtaining sound ingot free of blowholes.