A series of experiments were conducted at a bench scale reactor to investigate the effects of key influencing factors on the Hg0 removal from flue gas using the prepared diperiodatoargentate (III) (DPA) as an oxidant, trace ruthenium(III) as a catalyst, respectively. The experimental results showed that the average Hg0 removal efficiency reached to 87.5% under the optimal conditions in which the DPA concentration was 1.03 mmol/L, catalyst concentration was 2.0 μmol/L, reaction temperature was 40 °C and solution pH was 8.5. Meanwhile, it was found from the experiments that the high concentrations of SO2 and NO could inhibit the Hg0 removal due to the competition between Hg0 and SO2/NO, while the lower NO concentration exhibited a slight promotion for Hg0 removal. The evolutions of DPA(III) and Ru(III) before and after the reaction were characterized by an ultraviolet visible spectrophotometer (UV–vis), from which, the promotional mechanism of Ru(III) on Hg0 removal was analyzed. The spent solution was analyzed by a cold vapor atomic fluorescence spectrometer (CVAFS), which verified that Hg0 was oxidized into Hg2+ by the catalytic system of DPA(III)-Ru(III), and DPA was converted into Ag+.