High-quality Yb3+/Er3+/Mg2+ co-doped LiNbO3 crystal was grown by the Czochralski (Cz) technique. The OH transmission spectrum and Raman spectrum were studied. The Mg concentration in the crystal was below the optical damage threshold concentration point. The crystal had low defects with 48.25 mol % of Li. The absorption and fluorescence properties were also investigated. Yb3+ co-doping increased the absorption band in the region of 850-1050 nm, and Yb3+ ion can act as a sensitizer for Er3+ ion. One strong fluorescence peak with a broad full-width at half-maximum (FWHM¡«50 nm) at signals near 2720 nm was observed. We propose that the Yb3+/Er3+/Mg2+: CLN crystal is a potential candidate for a laser gain medium that can be used to generate a laser output of approximately 2700 nm by a 980 nm laser diode pumping.