The biodegradation of Grey Lanaset G, which consists of a mixture of metal complexed dye, was studied. Experiments were carried out in a bioreactor with retained pellets of the fungus Trametes versicolor that was operated under conditions of laccase production. Although decolorization was highly efficient (90%), no direct relationship to extracellular enzyme was apparent. Moreover, the extracellular enzyme was found to be unable to degrade the dye in vitro. The process involves several steps. Thus, the initial adsorption of the dye and its transfer into cells is followed by breaking of the metal complex bond in the cells release of the components. The metal (Cr and Co) contents of the biomass and treated solutions, and their closer relationship to intracellular enzyme and degradation of the dye, confirm the initial hypothesis.