The present invention relates to a method for producing fatty acid alkyl esters, such as fatty acid methyl esters (FAME) and fatty acid ethyl esters with a low level of impurities such as phospholipids. The method of the invention is simplified by combining two process steps into one single process step and is therefore economically cheaper. The method includes mixing water, alcohol, triglyceride and/or free fatty acids a lipolytic enzyme and a phospholipase. Subsequently the aqueous phase, which contains glycerine, residual enzyme and most of the hydrolyzed phospholipids, is separated from the non-aqueous phase, whereby the content of phospholipids in the non-aqueous phase is reduced.