We have identified the optical counterpart of the EUV transient source
RE J1255+266 with an similar to 18 mag blue star which has an unusual
optical spectrum showing a blue continuum and broad Balmer absorption
lines characteristic of a DA white dwarf, together with intense narro
w H Balmer and He I lines in emission. Subsequent optical spectroscopy
and photometry, together with near-IR photometry, demonstrate that th
is system is most likely a cataclysmic variable (CV) system with a hig
h-mass white dwarf and very low-mass companion viewed almost pole-on (
i.e. inclination i <5 degrees). At the time of our observations the sy
stem appears to be in its quiescent state with very little continuum e
mission from the disc, Fitting of the broad Balmer absorption lines yi
elds temperature and gravity estimates for the white dwarf. These meas
urements provide a means of estimating the distance to RE J1255+266; w
e find d=1801(-55)(+80) pc. At this distance the outburst EUV luminosi
ty of REJ1255+266 is L(EUV) >10(34) erg s(-1). The large observed EUV
luminosity of the outburst may be due to the viewing geometry of this
system which favours a direct and unobscured view of the EUV/soft X-ra
y emission region in the boundary layer between the white dwarf and th
e inner accretion disc.