A circular orbiting artificial Earth satellite is considered. The satellite is equipped with an electrodynamic attitude control system exploiting Lorentz and magnetic control torques. The perturbing influence of the gravity-gradient torque is taken into account. The problem of satellite stabilization in the Konig coordinate system with the use of electrodynamic attitude control system is investigated in nonlinear formulation. On the basis of the Lyapunov functions method, sufficient conditions for the asymptotic stability of the programmed satellite equilibrium position in the Konig frame are obtained.