We have observed the region around the HH 111 jet source with NICMOS onboar
d the Hubble Space Telescope, using two filters, F160W and F205W, which bes
ides stellar continuum transmit the [FeII] 1.64 mu m and H-2 2.12 mu m emis
sion lines, respectively. The jet can now be traced to within 2.4 " of the
VLA source. In the F205W filter we detect for the first time the driving so
urce in the near-infrared as a faint and highly reddened star. Additionally
, we detect in both filters a second source, called star B, about 3 " furth
er west, which appears to contribute significantly to the illumination of t
he blueshifted outflow cavity of the HH 111 jet. We present new 3.6 cm VLA
maps, which show evidence that the HH 111 energy source drives a quadrupola
r flow, suggesting that the source is a close binary with a projected separ
ation of less than 0.1 " (50 AU). We also detect star B at 3.6 cm, demonstr
ating that it is indeed a young star with its own (unresolved) signature of
outflow. The two IR/VLA sources are located on either side of a highly opa
que dust lane perpendicular to the HH 111 outflow axis, not inside it as on
e would expect. We speculate that the VLA 1 binary and the VLA 2 source are
at their present locations because they originally formed an unstable non-
hierarchical triple system from which VLA 2 was ejected. Such dynamic proce
sses may help to terminate the main accretion phase of the young stars invo
lved.