The invention discloses a rare-earth heteropolyacid salt-doped iron-based catalyst which is formed by mechanical mixing of rare-earth heteropolyacid salt and iron oxide, wherein mass ratio of rare-earth heteropolyacid salt to iron oxide is 1:2, 1:3 or 1:4; and rare-earth heteropolyacid salt is selected from Keggin structured rare-earth phosphotungstate. The rare-earth heteropolyacid salt-doped iron-based catalyst can be used in selective catalytic reduction of NOx and flue gas denitration. In specific application, ammonia gas is used as a reducing agent and mixed proportionally; and under conditions of a certain space velocity, nitrogen oxide concentration, reaction temperature and normal pressure and in the presence of oxygen, nitrogen oxide in flue gas is removed, and nitrogen oxide is converted to nitrogen. The catalyst provided by the invention has advantages of simple preparation method, no toxicity, no harm, no pollution, high catalytic activity, high stability, high denitration efficiency, high sulfur-resistance performance, simple processing equipment and little investment, and is suitable for industrial popularization.