Increasing nutrient supply level and eliminating pollution risk are essential to promote farmland soil use. In the soil-plant nutrition cycle, phosphorus is a limiting nutrient, toxic metals such as Cd and Pb are stress threats. Utilizing microorganisms as a bio-amendment could be a viable approach to enhance the cycling of soil phosphorus nutrients and immobilize Cd and Pb in the soil. This study involved the isolation of Aspergillus flavus AF-LRH1, a phosphate solubilizing fungal strain from soil. The strain exhibited the capacity to solubilize calcium phosphate, attaining a phosphorus concentration of 220.73 mg L−1 in the medium. High performance liquid chromatography analysis showed that AF-LRH1 produced a combination of organic acids (tartaric acid 260.7 mg L−1, fumaric acid 0.8 mg L−1, citric acid 911.9 mg L−1) to dissolve Ca3(PO4)2 by providing H+ ions. AF-LRH1 also utilizes NH4+ for the biosynthesis of amino acids and releases protons, which facilitate the dissolution of insoluble Ca3(PO4)2 and calcium phytate. Through these processes, calcium phosphate is partly converted into hydroxyapatite because of biological solubilization. AF-LRH1 strain showed the capability to recover phosphorus from various types of sludge-based solid residue by increasing the solubility of insoluble phosphate compounds for plant nutrient supply. In addition, the combining addition of AF-LRH1 strain and phosphate-containing amendments (calcium phosphate, sludge ash and biochar) benefited the decontamination of Pb and Cd contaminated soil. This finding confirmed the AF-LRH1 could be a promising environmental-friendly biofertilizer suitable for agricultural applications and bioremediation of heavy metal contaminated soil.