The present invention relates to a method for removing glycerol from biodiesel, characterized by the steps of mixing phosphonium based salt and a hydrogen bond donor which is selected from a group consisting of glycerol, ethylene glycol, triethylene glycol or any combination thereof to form a deep eutectic solvent; wherein the phosphonium based salt and the hydrogen bond donor is in a molar ratio of 1 :2 to 1 :5; mixing the biodiesel with the deep eutectic solvent, wherein the deep eutectic solvent and the biodiesel is in a molar ratio of 0.75:1 to 3:1; settling the mixture to separate the biodiesel from the deep eutectic solvent; and collecting the biodiesel.