We report the discovery of the gamma-ray burst GRB 000131 and its optical a
fterglow. The optical identification was made with the VLT 84 hours after t
he burst following a BATSE detection and an Inter Planetary Network localiz
ation. GRB 000131 was a bright, long-duration GRB, with an apparent precurs
or signal 62 s prior to trigger. The afterglow was detected in ESO VLT, NTT
, and DK1.54m follow-up observations. Broad-band and spectroscopic observat
ions of the spectral energy distribution reveals a sharp break at optical w
avelengths which is interpreted as a Ly alpha absorption edge at 6700 Angst
rom. This places GRB 000131 at a redshift of 4.500 +/- 0.015. The inferred
isotropic energy release in gamma rays alone was similar to 10(54) erg (dep
ending on the assumed cosmology). The rapid power-law decay of the afterglo
w (index alpha = 2.25, similar to bursts with a prior break in the lightcur
ve), however, indicates collimated outflow which relaxes the energy require
ments by a factor of < 200. The afterglow of GRB 000131 is the first to be
identified with an 8-m class telescope.