Low availability of native soil phosphorus (P) is a major constraint limiting sustainable crop production especially in alkaline calcareous soils. Application of organic manure in this regard has gained attention of the scientific community. Yet, the potential of fermented animal manure in improving P use efficiency and subsequent crop yield has not been assessed. This pot experiment was designed to study the performance of wheat under application of non-fermented and fermented animal manure in combination with 0, 45 or 90 kg·ha−1 phosphorus in the form of diammonium phosphate (DAP). Results show that non-fermented animal manure and split dose of phosphorus fertilizer improved plant quantitative attributes including plant growth, yield and nutrient uptake parameters. However, the placement of fermented animal manure combined with the full amount of P (90 kg·ha−1) fertilizer gave the mean highest value of fertile tillers per pot (12) and their grain yield (5.2 g). Moreover, plant physiological parameters were enhanced with fermented animal manure and the recommended rate of P fertilizer compared with the control. Likewise, the biochemical properties of wheat grain such as fat, fiber, ash and protein contents were increased by 1.24, 2.26, 1.47 and 11.2%, respectively, in plants receiving fermented animal manure and P fertilizer (90 kg·ha−1). Furthermore, co-application of fermented animal manure with P (90 kg·ha−1) into soil improved phosphorus uptake from 0.72 to 1.25 g·pot−1, phosphorus usage efficiency from 0.715 to 0.856 mg·pot−1, and soil phosphorus extent from 7.58 to 16.1% over controls. It is thus inferred that this new approach resulted in release of P from fermented manure that not only reduced fixation but also enhanced the growth, yield, physiology and nutrient uptake in wheat.