Class I protostars(1) are very young, low-mass stellar objects that ar
e, according to current models, composite: they include a central star
(still in the process of formation) surrounded by an accretion disk s
imilar to 10-100 AU in radius and embedded in an extended, infalling e
nvelope of gas and dust up to similar to 104 AU in size(2). X-ray emis
sion from such protostars has recently been reported(3,4), suggesting
that X-ray ionization of gas and heating of dust could profoundly infl
uence the physical and chemical properties of young stellar systems. B
ut these observations did not have the resolution necessary to rule ou
t a non-protostar origin for the emissions. Here we report X-ray obser
vations of one of the nearest star-forming regions-the rho Ophiuchi cl
oud-that clearly show an intense X-ray flare associated with a deeply
embedded protostar. The peak X-ray luminosity, after correcting for ex
tinction, is greater than or equal to 10-100 times the Sun's bolometri
c luminosity. The behaviour and intensity of the flare can be modelled
as arising from a magnetically confined, low-density plasma bubble si
milar to 0.05-0.3 Au in diameter (much larger than the star itself), a
nd the X-ray luminosity equals or exceeds the bolometric luminosity of
the forming star. Taken together the evidence suggests that the X-ray
s are not created by the type of magnetic activity seen on the Sun or
on other young low-mass stars, but rather are associated with processe
s in the circumstellar accretion disk or within the envelope.