ABSTRACT The narrow-line Seyfert 1 galaxy IRAS 17020+4544 is one of the few sources where both an X-ray ultrafast outflow and a molecular outflow were observed to be consistent with energy conservation. However, IRAS 17020+4544 is less massive and has a much more modest active galactic nucleus (AGN) luminosity than the other examples. Using recent CO(1–0) observations with the NOrthern Extended Millimeter Array, we characterized the molecular gas content of the host galaxy for the first time. We found that the molecular gas is distributed into an apparent central disc of 1.1 × 109 M⊙, and a northern extension located up to 8 kpc from the centre with a molecular gas mass $M_{\mathrm{ H}_2}∼ 10^8\, \mathrm{ M}_⊙$. The molecular gas mass and the CO dynamics in the northern extension reveal that IRAS 17020+4544 is not a standard spiral galaxy, instead it is interacting with a dwarf object corresponding to the northern extension. This interaction possibly triggers the high accretion rate on to the supermassive black hole. Within the main galaxy, which hosts the AGN, a simple analytical model predicts that the molecular gas may lie in a ring, with less molecular gas in the nuclear region. Such distribution may be the result of the AGN activity that removes or photodissociates the molecular gas in the nuclear region (AGN feedback). Finally, we have detected a molecular outflow of mass $M_{\mathrm{ H}_2}=(0.7\!-\!1.2)\times 10^7\, \mathrm{ M}_⊙$ in projection at the location of the northern galaxy, with a similar velocity to that of the massive outflow reported in previous millimetre data obtained by the Large Millimeter Telescope.