For the quantum algebra U_q(gl(n+1)) in its reduction on the subalgebra U_q(gl(n)) an explicit description of a Mickelsson-Zhelobenko reduction Z-algebra Z_q(gl(n+1),gl(n)) is given in terms of the generators and their defining relations. Using this Z-algebra we describe Hermitian irreducible representations of a discrete series for the noncompact quantum algebra U_q(u(n,1)) which is a real form of U_q(gl(n+1)), namely, an orthonormal Gelfand-Graev basis is constructed in an explicit form.