Approaches to (extracellular polymeric substance) EPS removal were studied with major aim to enhance the biodegradability and sludge solubilization. In this study, a novel approach of entrapment of bacterial strain was carried out to achieve long term activity of protease secreting bacteria Exiguobacterium sp. A mild treatment of potassium hydroxide (KOH) was applied to remove EPS which was followed by entrapment under the biological pretreatment. The efficiency of Exiguobacterium was predicted through dissolvable organic and suspended solids (SS) reduction. The maximum dissolvable organic matter released was 2300 mg/L with the solubilization of 23% which was obtained for sludge without EPS (SWOE). For dissolvable organic release, SWOE showed higher final methane production of 232 mL/g COD at the production rate of 16.2 mL/g COD.d. The SWOE pretreatment was found to be cost effective and less energy intensive beneficial in terms of energy and cost (43.9 KWh and -8.2 USD) when compared to sludge with EPS (SWE) pretreatment (-177.6 KWh and -91.23 USD).