The quasifree p + n --> d + eta reaction cross section has been measur
ed at the threshold using 1295 MeV protons in the CELSIUS storage ring
and an internal cluster-jet deuterium target. The kinematics is chose
n such that the target proton can be assumed to be a spectator. The Fe
rmi momentum of the target neutron is used to extract the energy depen
dence of the cross section by reconstructing the kinematics on an even
t-by-event basis. The data cover excess energies from threshold to 10
MeV in the center of mass of the final d eta system. Approaching the t
hreshold the cross section is enhanced compared to what is expected fr
om phase space. This behavior is typical for a strong final-state inte
raction.